Firms Try to Develop Resources and Capabilities to

question 21

Multiple Choice

Firms try to develop resources and capabilities to

• A)maximize attractiveness to our customers.
• B)create sustainable competitive advantage.
• C)maximize current profit rates.
• D)attract the best employees.

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Definitions:

Indirect Labor

Labor costs of employees who assist in the production process but do not directly work on the production of goods or services.

Factory Overhead

Factory overhead refers to the indirect costs associated with manufacturing, including utilities, maintenance, and management salaries.

Indirect Materials

Materials used in the production process that cannot be directly linked to a specific product, such as lubricants for machines.

Indirect Cost

Expenses that are not directly attributable to a specific business activity or product, such as overhead costs like utilities or rent.