Which of the Following Is True of the Process of Organizing

question 97

Multiple Choice

Which of the following is true of the process of organizing for competitive advantage?

• A) To maintain competitive advantage, companies need to restructure as they grow and the competitive environment changes.
• B) Strategy formulation and strategy implementation are independent activities.
• C) Organizing for competitive advantage is a static and not a dynamic process.
• D) Formulating an effective strategy is a necessary and sufficient condition for gaining and sustaining competitive advantage.

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Definitions:

Full Cost

The sum of all costs incurred in the production of a product or service.

Fixed Overhead

This refers to the consistent, non-variable costs incurred by a business, regardless of its level of production or sales volumes.

Variable Overhead

Costs that vary with the level of production output, such as utilities for machines and indirect materials.

Direct Labor Hours

The total hours worked by employees directly involved in the production of goods or services.