What Causes Core Capabilities to Become Core Rigidities

question 35

Multiple Choice

What causes core capabilities to become core rigidities?

• A) Changes in the external and internal environment
• B) Inertia and competition
• C) Strategic myopia and managerial inflexibility
• D) Lack of knowledge and poor use of assets

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Definitions:

Equivalent Unit

A concept in cost accounting that converts the amount of work done on incomplete units of production to an equivalent number of fully completed units.

Conversion Costs

Costs incurred during the manufacturing process to convert raw materials into finished goods, composed of direct labor and manufacturing overhead.

Direct Materials

Raw materials that can be directly attributed to the production of specific goods or services and are a significant component of manufacturing costs.

Equivalent Unit

A concept in cost accounting used to apportion costs to partially completed goods, allowing for a more accurate calculation of the cost per unit.