Explain the Major Benefits of a Development Project for Managing

question 13

Essay

Explain the major benefits of a development project for managing technology and innovation. Provide an example of a situation in which a development project might be turned into a source of competitive advantage.

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Definitions:

Variable Costing

A pricing approach that incorporates only variable production expenses—such as direct materials, direct labor, and variable manufacturing overhead—into the cost of products.

Absorption Costing

A costing method that assigns all manufacturing costs, both fixed and variable, to products.

Net Income

The total earnings of a company after subtracting all expenses from revenue.

Variable Costing

A costing method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of a product.