A Capability Is a Set of Tightly Integrated Activities,organizational Skills,and

question 51

True/False

A capability is a set of tightly integrated activities,organizational skills,and internally developed routines that relies on ordinary resources. Combining resources into activities eliminates the requirement that they be extraordinary to produce superior performance.

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Definitions:

Direct Labor-Hours

A measure of the total hours worked by employees who are directly involved in the manufacturing or production process.

Fixed Manufacturing Overhead

The portion of manufacturing overhead costs that remain constant regardless of the level of production, such as rent and salaries of permanent staff.

Denominator Activity

In managerial accounting, a measure of activity used to allocate fixed costs to cost objects.

Cost Per Unit

It represents the total cost incurred for producing, manufacturing, or acquiring a product divided by the number of units.