State the Difference Between Operating Capabilities and Dynamic Capabilities

question 23

Short Answer

State the difference between operating capabilities and dynamic capabilities.

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Definitions:

Raw Materials

Basic materials that are used in the production process, which will be transformed into finished goods through manufacturing.

Work in Process Inventory

Goods that are in the production process but have not yet been completed.

Direct Materials Standards

The expected cost and quantity of materials required for the production of a unit of product.

Raw Material Price

This refers to the cost of basic materials that are used in the production of goods.