Which of the Following Is a True Statement About Capabilities

question 29

Multiple Choice

Which of the following is a true statement about capabilities?

• A) Capabilities are often developed in specific functional areas such as manufacturing, R&D, and marketing.
• B) Valuable capabilities are based almost entirely on tangible resources.
• C) Capabilities based on human capital are more vulnerable to obsolescence than other intangible capabilities because of the tendency for employee knowledge to become outdated.
• D) The link between firm financial performance and capabilities is dependent on whether the capabilities are based on tangible or intangible resources.

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Definitions:

Standard Costs

Predetermined or estimated costs that are used as benchmarks for measuring the performance of actual costs in manufacturing or production.

Actual Costs

Actual costs are the real or true costs incurred for materials, labor, and overhead in the production of goods or provision of services, as opposed to estimated or standard costs.

Direct Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, used to analyze labor cost efficiencies or inefficiencies during production.

Standard Costs

Predetermined or budgeted costs serving as benchmarks for measuring performance, commonly used for budgeting and variance analysis.