Using the Innovation Matrix,the Strategic Decision to Implement Changes That

question 103

Multiple Choice

Using the innovation matrix,the strategic decision to implement changes that use existing assets to provide added convenience to existing customers and potentially entice customers from other brands is considered:

• A) a core innovation.
• B) an adjacent innovation.
• C) a transformational innovation.
• D) a diversification strategy.

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Definitions:

Fixed Component

The part of cost or expense that remains constant in total regardless of fluctuations in the level of activity or volume.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual products or job orders, calculated at the beginning of an accounting period.

Overhead Efficiency

The measurement of how effectively a company uses its overhead costs in the production of goods or services.

Predetermined Overhead Rate

This is a rate used to allocate manufacturing overhead costs to products or job orders, estimated by dividing total estimated overhead costs by an allocation base, such as direct labor hours or machine hours.