What Are Value Drivers

question 93

Multiple Choice

What are value drivers?

• A)a set of factors (analogous to cost drivers)that are particularly effective in having a strong differentiation effect
• B)a firm's hidden success factor for creating over-the-top product features that will command the highest price in the industry
• C)a technique for easily identifying factors that validate a firm's performance
• D)a set of factors that verify the unique nature of a firm
• E)a set of guidelines for identifying the most promising upscale attributes to incorporate into a product

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Definitions:

Industrial Fiber

Industrial fiber refers to synthetic or natural fibrous materials used in manufacturing for their durability and performance attributes.

Grinding Machine Time

The duration a grinding machine is actually operating to remove material from a workpiece, considered a cost driver in manufacturing processes.

Existing Grinding Capacity

The current maximum volume or quantity of material that can be ground or processed in a facility within a given timeframe.

Variable Cost

Expenses that change in proportion to the volume of goods or services produced.