Identify a True Statement About Competitive Advantage

question 38

Multiple Choice

Identify a true statement about competitive advantage.

• A)Successful businesses generally have only one source of competitive advantage.
• B)Businesses must develop an effective mission statement before developing a list of what might constitute its competitive advantage.
• C)An effective mission statement and sustainable advantage are mutually independent of each other.
• D)The predominant approach used by strategists to gain competitive advantage is the resource-based perspective.

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Definitions:

Manufacturing Overhead

Consists of all manufacturing costs that are not directly associated with the production of goods, including indirect labor, maintenance, and factory utilities.

Direct Labor-Hours

The compiled working hours of employees directly active in manufacturing tasks.

Activity-Based Costing

A method of allocating overhead and indirect costs to specific products or projects based on their consumption of resources.

Predetermined Overhead Rate

A rate calculated at the beginning of an accounting period, used to allocate overhead costs to products or job orders based on a certain activity.