Business Strategies in Emerging Industries Must Be Concerned with Which

question 60

Multiple Choice

Business strategies in emerging industries must be concerned with which of the following characteristics?

• A) Proprietary technology in the pioneering firms with moderate to high amounts of competitive uncertainty
• B) Low initial costs with hefty cost increases through time
• C) Many entry barriers
• D) Easy to obtain raw materials

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Definitions:

Direct Labor

The labor costs directly associated with the production of goods, including wages for workers who are involved in the actual manufacturing process.

Allocation Base

A measure or statistic used to distribute indirect costs to different cost objects, such as departments or products.

Budgeted Overhead

The estimated amount of all indirect costs associated with the production process or project.

Single Plantwide

A method used to allocate manufacturing overhead to products, using a single overhead rate for the entire manufacturing plant.