Trends Inc. has been awarded the best branded clothing company award for three years consecutively. The CEO of the company stated that this was possible due to the company strategically lowering the cost of each unit produced, and successfully maintaining that method in order to effectively contain finances. While comparing Trends with other similar production companies, it was found out that the company did certainly collect more profit than the others. The scenario best illustrates the:A. acquisition strategy.

B. investment strategy.

C. pricing strategy.

D. cost-management strategy.

Question

Krista Schmidt

Business

12 June, 15:28

Trends Inc. has been awarded the best branded clothing company award for three years consecutively. The CEO of the company stated that this was possible due to the company strategically lowering the cost of each unit produced, and successfully maintaining that method in order to effectively contain finances. While comparing Trends with other similar production companies, it was found out that the company did certainly collect more profit than the others. The scenario best illustrates the:A. acquisition strategy.

B. investment strategy.

C. pricing strategy.

D. cost-management strategy.

+3

Answers (1)

Know the Answer?

Alfredo · Answer 1

Letter D is correct.

Explanation:

The cost management strategy is focused on reducing the costs of the entire production process and thus ensuring lower sales prices, thus gaining competitiveness and generating greater profitability. It is a management based on continuous improvement, that is, analyzing and correcting possible errors found in the production process and ensuring the best efficiency throughout the process.