A Company That Has Competitive Assets That Are Central to Its

question 119

Multiple Choice

A company that has competitive assets that are central to its company strategy and superior to those of rival firms creates a

• A)long-term derivative strategy.
• B)cash flow feasibility analysis.
• C)competitive advantage over other companies.
• D)resource deployment strategic plan.
• E)cost underestimation and benefit overestimation.

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Definitions:

Variances

The differences between planned or expected financial outcomes and the actual results achieved.

Fixed Budget

A budget that outlines expected revenues and expenses over a specific period, which does not adjust in response to changes in business activity levels.

Static Budget

A budget that does not change or adapt to variations in business activity levels throughout the budgeting period.

Sales Variance Analysis

A financial process used to compare the actual sales against forecasted sales to understand variances and their causes.