Which of the Following Statements Is NOT Accurate with Respect

question 40

Multiple Choice

Which of the following statements is NOT accurate with respect to building a company's competencies and capabilities?

• A)Building new competencies and capabilities is a multistage process that occurs over a period of months and years.
• B)Core competencies have to be tweaked and adjusted to keep them fresh and responsive to changing customer needs and market conditions.
• C)As experience grows and company personnel learn how to perform the activities consistently well and at an acceptable cost, the ability evolves into a tried-and-true competence.
• D)It is generally much easier and less time-consuming to update and remodel a company's existing capabilities as external conditions and company strategy change than it is to create them from scratch.
• E)When a company succeeds in hiring talented employees and training them properly, competencies and capabilities tend to develop quickly and, once put in place, can last for a decade or more.

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Definitions:

Transactions

Financial events or exchanges between entities that result in changes to the accounting equation.

Manufacturing Overhead

All indirect costs related to the manufacturing process, including costs for utilities, rent, and maintenance of equipment, that are not directly traceable to a product.

Work in Process

Inventory consisting of goods that are in the production process but not yet complete.

Journal Entries

The records of financial transactions in a company, used to transfer information to the general ledger.