Which of the Following Is True of the Process of Organizing

question 97

Multiple Choice

Which of the following is true of the process of organizing for competitive advantage?

• A) To maintain competitive advantage, companies need to restructure as they grow and the competitive environment changes.
• B) Strategy formulation and strategy implementation are independent activities.
• C) Organizing for competitive advantage is a static and not a dynamic process.
• D) Formulating an effective strategy is a necessary and sufficient condition for gaining and sustaining competitive advantage.

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Definitions:

Overhead Applied

The process of assigning a portion of fixed and variable overhead costs to individual units of production.

Underapplied

A situation where the allocated or applied costs are less than the actual costs incurred, often in reference to manufacturing overhead.

Overapplied Overhead

A condition where the overhead allocated to products or services is more than the actual overhead incurred.

Actual Overhead Cost

The total of all indirect costs that have been incurred in the actual operation of a business.