3M's Description of Innovation Is "A New Idea Together with Action

question 61

Multiple Choice

3M's description of innovation is "a new idea together with action or implementation that has a bottom-line impact." This reflects which key component of innovation?

• A) The invention by itself does not make for innovation.
• B) It is not just the change that is important or that defines innovation.
• C) An innovation is more than just a novel idea or product.
• D) all of the above

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Definitions:

Fixed Manufacturing Overhead

Costs related to manufacturing that do not vary with the level of production, such as rent, salaries, and utility costs for the factory.

Absorption Costing

An accounting method that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed overhead) as part of the cost base of a product.

Variable Costing

An accounting method that includes only variable production costs in product costs and treats fixed overheads as period costs.

Fixed Manufacturing Overhead

The sum of all regular, non-variable costs involved in manufacturing, including rent, salaries of permanent staff, and maintenance of equipment.