Resources That Generate a Temporary Competitive Advantage Are

question 76

Multiple Choice

Resources that generate a temporary competitive advantage are

• A) valuable, rare and costly to imitate.
• B) valuable but neither rare nor costly to imitate.
• C) valuable and either rare or costly to imitate.
• D) valuable and rare but not costly to imitate.

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Definitions:

Depreciation

The systematic periodic transfer of the cost of a fixed asset to an expense account during its expected useful life.

Administrative Expense

Expenses related to the general operations of a business, such as salaries of non-sales personnel, rent, utilities, and office supplies.

Period Cost

Costs that are not directly tied to the production process and are expensed in the period in which they are incurred, such as selling, general, and administrative expenses.

Factory Equipment

The machinery and tools used in the process of manufacturing goods, often considered as fixed assets in accounting.