An Innovation That Alters How the Components Interact and Are

question 8

Multiple Choice

An innovation that alters how the components interact and are linked with each other is a/an:

• A)competence-enhancing innovations
• B)competence-destroying innovation
• C)architectural innovation
• D)modular innovations

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Definitions:

Fixed Cost

An expense that does not change with the level of production or sales over a short period.

Sales Commissions

The payment given to sales employees based on the amount of sales they generate, typically a percentage of the sale price.

Sales Volume

The amount of goods or services a company sells over a certain time frame.

Variable Costs

Costs that vary directly with the level of output or production, such as materials and labor directly involved in manufacturing.