The Ability to Leverage and Develop More from the Organisation's

question 75

Multiple Choice

The ability to leverage and develop more from the organisation's existing assets,capabilities and core competencies in a way that will provide a sustained competitive advantage is known as a:

• A) relative strength
• B) dynamic capability
• C) cost leadership advantage
• D) opportunity
• E) None of these choices.

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Definitions:

Direct Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard amount expected to be used, multiplied by the standard cost per unit of material.

Actual Costs

Expenditures that a company incurs, as opposed to estimations or budgeted amounts.

Standard Costs

Predetermined costs for material, labor, and overhead used as benchmarks for measuring performance.

Direct Labor Time Variance

The difference between the actual hours spent on production and the standard hours expected, multiplied by the standard hourly wage rate.