In Case of Emergence of a Disruptive Technology, Established Companies

question 43

Multiple Choice

In case of emergence of a disruptive technology, established companies should:

• A) avoid investing in newly emerging technologies that may ultimately become disruptive technologies.
• B) ask customers "Are you interested in this new technology?"
• C) acquire newly emerging companies that are pioneering potentially disruptive technologies.
• D) reduce costs on research and development activities.
• E) avoid commercializing new technologies.

Recognize the treatment of manufacturing overhead costs and the differences between actual and applied overhead.

Explain the flow of costs in a manufacturing environment from raw materials to finished goods.

Understand the concept and calculation of predetermined overhead rates.

Identify and record transactions related to the purchase and use of raw materials in production.

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Definitions:

Monopoly

A market structure characterized by a single seller controlling all supply of a good or service, with no close substitutes.

Marginal Revenue

The incremental revenue earned by selling one more unit of a good or service.

Prices

The financial requirement for buying a good, service, or asset.

Marginal Revenue

The financial gain realized from the sale of one more unit of a good or service.