A Dynamic Capability

question 37

Multiple Choice

A dynamic capability:

• A) is the ongoing capacity to modify existing resources and capabilities to create new ones.
• B) is the improvement evaluation process for eliminating waste in the firm.
• C) is the functional and operating resources management process.
• D) is the ongoing capability to understand and establish a rival commitment to resource alignment.
• E) All of these.

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Definitions:

Standard Costs

Predetermined costs for material, labor, and overhead used as benchmarks for measuring performance.

Direct Labor Time Variance

The difference between the actual hours spent on production and the standard hours expected, multiplied by the standard hourly wage rate.

Actual Costs

are the genuine expenditures incurred in the production or acquisition of goods and services, as opposed to estimated or standard costs.

Standard Costs

Pre-determined or benchmark costs for products, operations, or activities, used for budgeting purposes and performance evaluation against actual costs.