Which of the Following Factors Does Not Determine the Durability

question 36

Multiple Choice

Which of the following factors does not determine the durability of a company's competitive advantage?

• A) Barriers to imitation
• B) A company's prior strategic commitments
• C) Capability of competitors
• D) General level of dynamism in the industry
• E) The rate of product innovation in an industry

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Definitions:

Actual Costs

The genuine expenses incurred in the production of goods or delivery of services, measured after they occur.

Cost Formulas

Mathematical equations used to calculate the costs associated with different accounting and financial practices.

Flexible Budgets

Budgets that are designed to vary in accordance with changes in the level of activity or output, to provide more accurate costing and planning.

Spending Variance

The difference between the actual amount of the cost and how much the cost should have been, given the actual level of activity. A favorable (unfavorable) spending variance occurs because the cost is lower (higher) than expected, given the actual level of activity for the period.