All of the following are examples of cost reductions that can result from an acquisition except:
A) reducing the number of management personnel required.
B) lowering office costs by combining job functions.
C) allocating fixed overhead across a wider range of products.
D) benefiting from economies of scale when purchasing raw materials.
E) increasing the firm's market share.

Question

Quizplus · Accepted Answer

Increasing the firm's market share is not an example of a cost reduction that can result from an acquisition. It may lead to increased revenue and profitability, but it does not directly reduce costs.

Therefore, the correct answer is:

Answer: E

All of the Following Are Examples of Cost Reductions That