Which of the Following Is NOT an External Event That

question 4

Multiple Choice

Which of the following is NOT an external event that reveals the danger of relying on existing core capabilities?

• A) A new competitor figures out a better way to serve the firm's customers.
• B) New technologies emerge and replace those used by the firm.
• C) A firm changes its focus to a new core competence.
• D) Political or social events shift the foundation of current core capabilities.

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Definitions:

Machine-hours

An indicator of the duration for which equipment is utilized in the manufacturing process, commonly employed for distributing manufacturing overhead costs.

Contribution Margin

The amount remaining from sales revenue after variable expenses are deducted, indicating the potential profitability of products.

Net Operating Income

A measure of a company's profitability from its core business operations, excluding non-operating income and expenses.

Variable Expense Ratio

A measurement that indicates the proportion of variable expenses to sales, showing how costs change with sales volume.