The Process by Which Companies Find Out How Others Do

question 55

Short Answer

The process by which companies find out how others do something better than they do and then try to copy and/or improve it is known as _____.

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Definitions:

Differential Cost

is the change in a company's cost of producing goods or services under two different action alternatives, essentially the cost difference between two choices.

Unused Capacity

The available but not utilized production ability of a company which could potentially generate revenue if employed.

Unit Cost

The cost incurred to produce, store, or acquire one unit of a product, calculated by dividing the total cost by the number of units.

Differential Cost

The difference in cost between two alternative decisions or scenarios.