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What Term Is Used for an Innovation That Creates Substantial

question 39

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What term is used for an innovation that creates substantial growth by offering a new performance trajectory that, even if it is initially inferior, has the potential to become markedly superior?


Definitions:

Resource Consumption

The usage of resources by a company or process, including materials, energy, and labor, critical for understanding cost behaviors and environmental impact.

Activity-Based Costing

A costing methodology that assigns costs to products or services based on the activities and resources required to produce or deliver them.

Activity Cost Pools

A technique in managerial accounting where costs are aggregated based upon the activities that generate those costs, to assign costs more accurately.

Machine-Hours

A measure of production activity that quantifies the amount of time machinery is used to manufacture products during a specific period.

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