A cost leadership strategy focuses on becoming more efficient than competitors so the organization can offer products or services at lower cost while maintaining acceptable quality. Efficiency may come from economies of scale, process standardization, supply-chain control, technology, automation, tight cost management, or high asset utilization. A differentiation strategy focuses on uniqueness, quality, brand, innovation, or customer experience. A focus strategy targets a narrow market segment, either through cost focus or differentiation focus. Portfolio strategy concerns managing a mix of businesses or investments rather than competing through operating efficiency. Internal auditors reviewing strategy should understand the selected competitive approach because it affects risks, controls, performance measures, and investment priorities. Therefore, Option B is correct.