When a Firm Develops a Knowledge Asset,such as a Process,pays

question 87

Multiple Choice

When a firm develops a knowledge asset,such as a process,pays for it and reuses it over and over at a very low cost,this adds ________ for the firm.

• A) tacit knowledge
• B) little value
• C) a competitive advantage
• D) a recoverable loss

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Definitions:

Standard Cost System

An accounting system that uses standard costs for products or services for the purpose of controlling costs and assessing operational performance.

Standard Direct Labor-Hours

The estimated amount of labor hours required to produce a unit of product, used in budgeting and variance analysis.

Denominator Level

The activity level used to compute a predetermined overhead rate, often reflecting capacity or expected usage.

Budget Variance

The difference between budgeted figures for a set period and the actual figures achieved.