New Technology

question 18

Multiple Choice

New technology:

• A)seldom contributes to competitive advantage or operational efficiency.
• B)frequently enables competitive advantage from product/service differentiation at lower cost.
• C)seldom enables competitive advantage from product/service differentiation at lower cost.
• D)frequently enables competitive advantage from product/service differentiation,but typically at higher cost.
• E)frequently enables operational efficiencies,but seldom enables competitive advantage.

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Definitions:

Plant Capacity

The maximum level of output that a facility can sustain to produce goods or services under given conditions.

Variable Costs

Costs that vary directly with the level of production or sales.

Total Cost Method

An accounting approach that sums up the direct, indirect, fixed, and variable costs associated with manufacturing a product.

Cost-Plus Approach

A pricing strategy where the selling price is determined by adding a specific markup to a product's cost to ensure profitability.