Strategy is Key

Procedures, processes, and routines that continuously expand existing resources or improve operating capabilities most accurately define the term

Dynamic capabilities

A reduction in costs per unit due to increases in efficiency of production as the number of goods being produced increases best defines the term

Economies of scale

The increased efficiency that results when employees perform a narrow range of tasks over and over again leading them to acquire specialized knowledge that helps them complete the task more efficiently accurately defines the term

Employee specialization

The relatively fixed costs such as the costs of plant and equipment, which do not increase with an increase in the number of units manufactured, are known as

Fixed cost of production

The expenses and taxes that are directly related to the wide-ranging operation of a company best define the term

General and administrative costs

Which of the following is a feature of task specializaiton

It enables workers to be more efficient and thus enables them to avoid loss of time

Which of the following is true of a tangible resource?

It has a physical presence such as land, machinery, and cash

What is true about a minimum efficient scale

It shows the optimal quantity for a company to produce

Which of the following is a primary characteristic of employing automated equipment in a company with high levels of production?

Large companies can reduce per-unit cost of production

The procedures, processes, or routines for delivering value to customers, employees, suppliers, or investors most accurately define the term

Operating capabilities

A firm's values and rankings of what is most important most accurately defines the term

Priorities

Resources that create ____ can be defined as those that create economic value for a firm

Profits

Breaking a large process into smaller elements that require specialized knowledge is known as

Task specialization

Values is usually created when

The end user enjoys direct pleasure and satisfaction from a company's product

Which of the following statements is true of a company's general and administrative costs (G&A)

They help a company with high sales volume that creates cost advantage by managing its G&A across more units