During Which Phase of a Technology Cycle Do Companies Innovate

question 110

Multiple Choice

During which phase of a technology cycle do companies innovate by lowering the cost and improving the functioning and performance of the dominant design?

• A) during the technological discontinuity phase
• B) during the discontinuous change phase
• C) during the process implementation phase
• D) during the incremental change phase

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Definitions:

Fixed Factory Overhead Cost

Costs related to the operation of a manufacturing facility that do not vary with production volume, such as rent, salaries, and insurance.

Rate of Return

The gain or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.

Target Cost Approach

A pricing method where the selling price is set first, and then the target cost is determined by subtracting a desired profit margin.

Markup

The amount added to the cost of goods to cover overhead and profit, determining the selling price.