A Company's Proprietary Expertise That Makes It Different Its Competitors

question 36

Multiple Choice

A company's proprietary expertise that makes it different its competitors and helps to maintain its competitive advantage can be discussed under the following theory:

• A) internalization or technological theory.
• B) Internalization or transaction cost theory.
• C) Internalization or regional cost theory.
• D) Internalization or transnational theory.
• E) Internalization or traditional cost theory.

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Definitions:

Direct Materials

Rephrase: The raw materials or components directly incorporated into a finished product, impacting the product's production process.

Manufacturing Overhead

All indirect costs associated with manufacturing, such as utilities, maintenance, and salaries not directly tied to production.

Direct Materials

Raw materials that are directly traceable to the production of a specific good or product.

Direct Labor

The cost of workers who are directly involved in the production of goods or services.