Organizations Can Achieve a Competitive Advantage by Using Their Resources

question 90

Multiple Choice

Organizations can achieve a competitive advantage by using their resources to:

• A) create strategies that are simultaneously being implemented by competitors.
• B) duplicate the value a competitor firm provides to its customers.
• C) provide greater value for customers than competitors can.
• D) foster competitive inertia.

Analyze the impact of underapplied or overapplied overhead on financial statements.

Distinguish between job order costing and process costing systems.

Understand the flow of manufacturing costs and its impact on the general ledger accounts.

Identify the significance and calculation of cost of goods manufactured and cost of goods sold.

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Definitions:

Transactions Needs

The requirement for cash or liquid assets for the purpose of meeting immediate expenses or financial obligations.

Collection Float

The time period between when a payment is initiated by a payer and when the funds are available in the payee’s account.

Opportunity Costs

The benefit that is missed or foregone when choosing one alternative over another.

Trading Costs

Expenses associated with buying and selling securities, including broker commissions and spreads.