The Main Implication of the Resource-Based View of Firm Is

question 42

Multiple Choice

The main implication of the resource-based view of firm is:

• A)The boundaries of the firm are determined by the firm's resources rather than by transaction costs
• B)The resources of the firm are the foundation for its capabilities
• C)Resources and capabilities are the principal basis for firm strategy and the primary source of profitability
• D)Ricardian rents are a more important source of firm profitability than monopoly rents

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Definitions:

FOH Budget Variance

The difference between the actual factory overhead costs incurred and the overhead costs allocated to production based on budgeted rates.

Fixed Manufacturing Overhead

Costs that do not change with the level of production, including salaries, rent, and insurance.

Labor Efficiency Variance

A discrepancy between the actual working hours and the expected standard hours, multiplied by the predetermined salary rate.

Direct Labor Standards

Direct labor standards are predetermined measures for the amount of labor time and cost that should be associated with producing a unit of product or performing a service.