Cost containment practices by a firm would not be effective for cost increases caused by
A)inflation.
B)a reduction in the quantity of an input purchased.
C)normal seasonality.
D)a reduction in the number of suppliers.

Question

Quizplus · Accepted Answer

Cost containment practices by a firm typically focus on reducing internal inefficiencies, negotiating better prices, and improving processes. However, they would not be effective against external economic factors such as inflation, which affects the general price level of goods and services in an economy and is beyond the control of any single firm.

Cost Containment Practices by a Firm Would Not Be Effective