Suppose the Chester company expands to other markets with good designs, high awa

Question

Suppose the Chester company expands to other markets with good designs, high awareness and easy accessibility, what strategy would they be implementing? Select: 1 Broad differentiation Broad cost leader Niche cost leader Niche differentiatio On the Income Statement, which of the following would be classified as a variable cost? Select: 1 Promotion Expense Depreciation Expense R&D Expense Direct Labor Expense Suppose the Chester company expands to other markets with good designs, high awareness and easy accessibility, what strategy would they be implementing? Select: 1 Broad differentiation Broad cost leader Niche cost leader Niche differentiatio

Explanation / Answer

A. If chester Company Expand to other market with Good design, High Awarness and easy accessiblity than company should go for Broad Differentiation Because it will help the comany to charge the premium price, company can earn consumer loyalty due to the good and unique design, High awarness and good quilty will help to better sales due to the service provided.

B. Direct Labour Expenses would be classified as a Variable Cost because all other cost can not be charge unit basisi all are charge to income statment as lumsum or Fixed Cost Basis only such as promational expenses can not incurred on the basis of sales unit same as R&D Expenses and Depreciation expense charge as whole and not as unit only Direct Labour can be charge as varible expenses

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