Evaluation of Competitive Advantage Involves Assessing How Relevant a Firm's

question 81

True/False

Evaluation of competitive advantage involves assessing how relevant a firm's resources and capabilities are in terms of generic strategies.

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Definitions:

Sequential Method

A cost allocation technique that processes cost pools in a pre-determined order, allocating costs to one cost object before moving on to the next.

Support Department Allocations

The process of attributing a portion of support (or indirect) department costs to the producing departments within an organization, based on agreed-upon criteria.

Cost Driver

A factor that causes a change in the cost of an activity; it directly impacts the cost of manufacturing goods or delivering services.

Reciprocal Services Method

An approach to allocating costs between departments that provide mutual services to each other, ensuring a fair distribution based on services rendered.