What Is the Difference Between a Tangible and an Intangible

question 7

Essay

What is the difference between a tangible and an intangible resource? Give an example of each? Which of these types of resources is most likely to lead to competitive advantage? Why?

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Definitions:

Manufacturing Cost

The total expense incurred in the process of producing goods, including direct materials, direct labor, and overhead costs.

Direct Labor Cost

The expense associated with labor directly involved in the production of goods or services, excluding indirect labor costs.

Overhead

A broader category of ongoing expenses not directly tied to specific products or services but essential for the business's day-to-day operations.

Machine-Hours

A measure of the amount of time machines are running in the production process, used to allocate manufacturing overhead costs.