When Incremental Improvements Are Made to a Dominant Technological Design

question 23

Multiple Choice

When incremental improvements are made to a dominant technological design such that the improved version of the technology is fully backward compatible with the older version,____________ is said to have occurred.

• A) a milestone
• B) intuitive change
• C) generational change
• D) coercive change
• E) discontinuous innovation

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Definitions:

Fixed Asset Turnover Ratio

A performance metric that measures a company's efficiency in using its fixed assets to generate sales, calculated as net sales divided by the average net fixed assets.

Depreciation Expense

An accounting method that allocates the cost of a tangible asset over its useful life, reflecting its consumption or wear and tear.

U.S. GAAP

Generally Accepted Accounting Principles in the United States, a standard framework of guidelines for financial accounting used in any jurisdiction.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, presenting the financial results of its operations.