By Themselves, Resources Can Allow Firms to Create Value for Customers

question 13

True/False

By themselves, resources can allow firms to create value for customers as the foundation for earning above-average returns.

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Definitions:

Make or Buy

A decision-making process used by companies to determine whether they should produce goods internally or purchase them from an external supplier.

Indirect Spend

Expenses incurred for materials, services, and maintenance that do not directly contribute to the production of goods.

Direct Spend

Expenses directly tied to the production of goods or services, such as raw materials and labor.

Outsourced

The practice of having certain job functions or processes handled outside of the company, typically by a third party, to reduce costs or focus on core competencies.