Core Competencies Are the Activities a Company Performs Especially Well

question 105

True/False

Core competencies are the activities a company performs especially well compared with competitors and through which the firm adds unique value to its goods and services.

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Definitions:

Direct Materials

Raw materials that are directly used in the manufacturing process of a product and can be easily traced to it.

Factory Overhead

All indirect costs related to manufacturing, such as utilities, maintenance, and salaries of indirect labor, not directly tied to production.

Direct Materials

Materials that can be directly linked to the creation of a product and represent a large part of the cost of production.

Direct Labor

The labor cost of workers who are directly involved in the production of goods or the provision of services.