What Is One of the Challenges of Measuring Competitive Advantage

question 94

Multiple Choice

What is one of the challenges of measuring competitive advantage using the economic value creation approach?

• A) The value placed on a product or service by the consumer changes according to income and preferences.
• B) It is difficult to measure the economic value created for all products and services across the organization.
• C) It is challenging to determine the value of a product or service from a customer's perspective.
• D) All of these.

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Definitions:

Modified Cash Basis

An accounting method that combines elements of both cash and accrual accounting techniques.

Warranty Expense

Costs recognized by a company in accordance with its policy to repair or replace defective products during a warranty period.

Matching Concept

The Matching Concept in accounting states that expenses should be matched with the revenues that they helped to generate, in the same reporting period.

Uninsured Risk

Risk that has not been covered by an insurance policy, leaving the individual or business exposed to potential financial loss.