A Firm Can Improve Its Operational Capabilities by ______

question 17

Multiple Choice

A firm can improve its operational capabilities by ______.

• A)leveraging only its own current resources
• B)leveraging the resources of its supply chain partners
• C)by focusing only on economic value
• D)by focusing only on both social and economic value

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Definitions:

Segment Margin

The amount of profit or loss generated by a specific segment of a business, after deducting direct and allocated expenses attributable to that segment.

Common Fixed Expenses

Expenses that do not vary with the level of production or sales and are typically required to run a business, such as rent, salaries, and insurance.

Variable Costing

A costing method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of goods sold, treating fixed manufacturing overhead as a period cost.

Fixed Manufacturing Overhead

The manufacturing costs that do not change with the level of production, such as rent, salaries, and insurance.