Resources Can Be Considered Valuable If They Enable a Company

question 64

True/False

Resources can be considered valuable if they enable a company to create a strong demand for its products or if it reduces the costs of producing its products.

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Definitions:

Direct Cost

Expenses that can be directly traced to the production of specific goods or services, such as raw materials and labor.

Hourly Labour

Refers to workers who are paid for each hour of work they perform, as opposed to salaried employees who receive a fixed amount regardless of hours worked.

Kitchen Benchtops

The flat surfaces in a kitchen on which food can be prepared, often made from materials such as stone, laminate, or timber.

Mixed Cost

Expenses that have both fixed and variable components, changing in total with the level of activity but not proportionately.