The Existence of Substitute Products Increases Competitive Intensity in an Industry

question 28

True/False

The existence of substitute products increases competitive intensity in an industry.

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Definitions:

Direct Labor-Hours

The total time workers or employees spend directly manufacturing a product or providing a service.

Overhead Applied

The allocation of estimated overhead costs to individual units of production, based on a predetermined rate.

Forming Department

A section in manufacturing where raw materials are shaped or formed into parts for further production processes.

Machine-Hours

The total hours that machinery is operated during the production process.