Which of the Following Is a Difference Between Experiential Approach

question 24

Multiple Choice

Which of the following is a difference between experiential approach to innovation and compression approach to innovation? 

• A) ​Experiential approach is used in fast-growing environments, whereas compression approach is used in highly uncertain environments. 
• B) ​Experiential approach is used in periods of incremental change, whereas compression approach is used in periods of discontinuous change. 
• C) ​Experiential approach is used to establish a new dominant design, whereas compression approach is used to improve the function of the existing dominant design. 
• D) ​Experiential approach is used to shorten the time of individual steps, whereas compression approach is used to test the improved product or service prototype.

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Definitions:

Activity-Based Costing

A costing methodology that assigns costs to products and services based on the activities and resources that go into their production.

Activity-Based Costing System

A costing methodology that assigns costs to products or services based on the activities and resources that go into producing them, aiming for more accurate product costing.

Direct Materials Cost

The cost of raw materials that are directly used in the manufacturing of a product.

Activity-Based Costing

A costing approach that allocates overhead and indirect expenses to distinct activities, offering a more precise cost estimation for products.