The Facet of a Business That the Business Does Better

question 25

Multiple Choice

The facet of a business that the business does better than all of its competitors is known as which of the following?

• A) competitive advantage
• B) competitive edge
• C) competitive power
• D) absolute advantage

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Definitions:

Prime Costs

The direct costs of manufacturing a product, specifically direct materials and direct labor.

Direct Materials

Raw materials that can be directly traced to the manufacturing of a product and are considered a variable cost.

Direct Labor

The cost of wages paid to workers directly involved in the production of goods or provision of services.

Direct Materials

The raw materials directly traceable to the manufacturing of a product and included in the cost of goods sold.