Which of the Following Does Not Illustrate the Idea of Creative

question 7

Multiple Choice

Which of the following does not illustrate the idea of creative destruction?

• A) Digital downloads have shrunk the market for CDs and DVDs
• B) Online retail sales have increased, while brick-&-mortar sales have slowed down
• C) The opening of a new mall reduces the traffic in another mall
• D) A firm has to destroy some of the expired products in its inventory

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Definitions:

Standard Costs

Predetermined costs for materials, labor, and overhead that are used as benchmarks for measuring actual performance and cost control.

Cost System

A method of accumulating, assigning, and absorbing costs in an organization, used for financial reporting and decision-making.

Raw Material

The basic material from which a product is made, often used in manufacturing or production processes.

Pounds

A unit of weight commonly used in the British, United States customary and other systems of measurement.