To Stop Rivals Acquiring a Core Resource or Capability

question 63

Multiple Choice

To stop rivals acquiring a core resource or capability,

• A)firms cannot stop its rivals from doing things they want to.
• B)firms need to make that resource or capability immobile.
• C)firms must use patents and the full array of legal protections.
• D)everyone involved in this activity must be paid higher than the rivals could pay.

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Definitions:

Absorption Costing

A method of accounting for all the costs associated with manufacturing a product, including all direct costs and fixed and variable overhead expenses.

Variable Costing

An accounting approach where only variable manufacturing costs are included in product costs, excluding fixed manufacturing overhead.

Fixed Costs

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Absorption Costing

An accounting method that includes all manufacturing costs, both fixed and variable, in the cost of a product.