Value Drivers Are Considered to Contribute to Competitive Advantage Even

question 64

True/False

Value drivers are considered to contribute to competitive advantage even if the increase in cost exceeds their value creation.

---

Definitions:

Net Operating Income

A measure of a company's profitability calculated by subtracting operating expenses from operating revenues, excluding non-operating income and expenses.

Variable Costing

An accounting method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs.

Unit Product Cost

The total cost incurred to produce, market, and distribute a single unit of a product.

Variable Costing

This is an accounting method that only includes variable costs—costs that change with production volume—in the calculation of product cost.