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Identify the Five Most Common Threats Facing Firms from Their

question 37

Essay

Identify the five most common threats facing firms from their local competitive environment that are represented in the five forces framework,and discuss under what conditions firms in a specific industry are most likely to earn an above average profit and when they are to likely to earn a below average profit.


Definitions:

Traditional Costing

An accounting method that allocates overhead based on a single, volume-based cost driver, often used in manufacturing industries.

Manufacturing Overhead

All indirect costs associated with the production process, such as utilities, depreciation of manufacturing equipment, and factory personnel salaries.

Total Product Cost

The sum of all costs directly or indirectly associated with producing a product, including materials, labor, and overhead.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific products or services based on the activities and resources that go into their production.

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