A Core Competence

question 85

Multiple Choice

A core competence

• A)detracts from a company's arsenal of competitive capabilities and competitive assets and is not a resource strength considered to be genuine.
• B)is typically results-based, residing in a company's tangible physical assets on the balance sheet.
• C)is often grounded in a single department's set of knowledge and expertise.
• D)is an activity that a firm performs proficiently that is also central to its strategy and competitive success.
• E)is a proficiently performed external activity.

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Definitions:

Scattergraph

A graphical representation used in cost accounting to show the relationship between a cost (dependent variable) and its driver (independent variable).

Contribution Margin Ratio

The proportion of sales revenue that remains after variable costs are subtracted, represented as a percentage of total sales.

Selling Price

The amount of money for which a product or service is sold to customers.

Least-Squares Regression

A statistical method used to determine the line of best fit by minimizing the sum of squares of the differences between observed and predicted values.