The Perceived Importance of Resources and Capabilities to Firms' Strategies

question 79

Multiple Choice

The perceived importance of resources and capabilities to firms' strategies became prominent because:

• A)Top managers have understood the importance of competitive advantages from major academic papers published at the time.
• B)The general environment has become more unstable and the structure of industries has evolved towards simultaneously more cooperation and more competition
• C)The planning school of strategy has been heavily criticized and planning departments in large firms have almost disappeared
• D)It became increasingly apparent that competitive advantage was more important to profit generation than mere characteristics of the industry as a whole.

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Definitions:

FIFO Method

The First-In, First-Out method is an inventory valuation technique where the costs of the earliest goods purchased are the first to be recognized in cost of goods sold.

Earliest Units

The first units produced or acquired in a period, which are often accounted for differently in inventory costing methods.

Cost Of Goods Sold

The total cost directly associated with producing goods sold by a business, including materials and labor.

Perpetual Inventory System

An inventory system under which the company keeps detailed records of the cost of each inventory purchase and sale, and the records continuously show the inventory that should be on hand.