Which of the Following Will Not Help an Established Company

question 27

Multiple Choice

Which of the following will not help an established company in addressing the potential challenge of a disruptive technology?

• A) Access to knowledge about how disruptive technologies can revolutionize markets
• B) Investing in newly emerging technologies that may ultimately become disruptive technologies
• C) Anticipating and planning for how disruptive technology will change business
• D) Distinctive competencies in the current business model
• E) Understanding that a disruptive technology will require a radically different value chain with a different cost structure

Apply activity-based costing to various scenarios, including manufacturing and service industries.

Understand the role of cost drivers in ABC and how to select appropriate cost drivers for cost allocation.

Analyze the impact of overhead costs on product costing and how ABC addresses this issue.

Assess the implications of product diversity on product costing under ABC.

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Definitions:

Price Fixing

An illegal agreement between participants on the same side in a market to buy or sell a product, service, or commodity only at a fixed price, or maintain market conditions so the price remains at a given level.

Illegal

Activities or actions that are prohibited by law and subject to criminal or civil penalties.

Resale Price Maintenance

A practice where the original manufacturer of a product controls the retail price at which resellers must sell the product.

Sherman Act

A landmark federal statute in the field of United States antitrust law passed by Congress in 1890 to prohibit monopolistic business practices.