A Core Competency Gives Every Employee in an MNE a Principle

question 71

True/False

A core competency gives every employee in an MNE a principle that helps them coordinate transactions between value activities.

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Definitions:

Fixed Expenses

Regular and unchanged expenses incurred by a business irrespective of its level of output or sales volume, such as lease payments, insurance, and salaries of permanent employees.

Theory of Constraints

A management paradigm that focuses on identifying and addressing the single bottleneck or constraint that severely limits a system's performance or output.

Bottlenecks

Refer to points of congestion in a production system that significantly slow down the overall process.

Variable Cost Concept

A concept used in applying the cost-plus approach to product pricing in which only the variable costs are included in the cost amount to which the markup is added.