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2 years ago

The fundamental relationship between economic value creation and competitive advantage is?

1 answer:

soldier1979 [14.2K]2 years ago

3 0

The fundamental relationship of economic value creation to competitive advantage is that an increase in one will leads to another. Due to that, we can say that other competitors’ economic value creation will decrease. These changes will lead to a relative shift in cost structure and a shift in consumers’ behavior to pay more.

Competitive markets deal with homogenous products and with too many producers and due to that no one producer can create a monopoly. As in monopoly, the market deals with non-homogenous products with single or few producers.

Further descriptions are below here about the relationship between value creation and competitive advantages:

Fundamental in strategic management
Provides the foundation upon which to formulate a firm's competitive strategy for cost leadership or differentiation
A firm has a competitive advantage when it creates more economic value than rival firms.

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Planning for Resources

Explanation:

The process of resources management includes:

the development of recompense systems.
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3 years ago

Moody Corporation uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the be

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a. The plantwide predetermined overhead rate is $8.7 per machine hour.

b. The Overhead applied is 296.

c. The total manufacturing cost assigned to Job 400 is $896.

d. The unit product cost for this job is $14.93.

<h3> Predetermined overhead rate </h3>

a. Predetermined overhead rate

Predetermined overhead rate = Variable overhead cost per machine hour + Fixed manufacturing overhead cost/Estimated machine hours

Predetermined overhead rate= 4.60 + 652,000/159,000

Predetermined overhead rate= 4.60 + 4.10

Predetermined overhead rate= $8.7 per machine hour

b. Overhead applied

Overhead applied = Actual machine hours used x Predetermined overhead rate

Overhead applied = 34x 8.7

Overhead applied= $295.8

Overhead applied= $296 (rounded to nearest whole dollar)

c. Total manufacturing cost assigned to Job 400.

Job cost sheet

Direct material $370

Direct labor $230

Overhead applied $296

Total manufacturing cost $896

d. Unit product cost = Total manufacturing cost/Number of units

Unit product cost = 896/60

Unit product cost = $14.93

Inconclusion the plantwide predetermined overhead rate is $8.7 per machine hour and the Overhead applied is 296.

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3 years ago

The net current asset investment (ncai) is defined as the change in current assets minus the change in sum of the accounts payab

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The net current asset investment (NCAI) is defined as the change in current assets minus the change in the sum of the accounts payable and accruals. - True.

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The net current assets are the tangible assets which encompass cash, inventory, and receivable, which denotes the money owed to a company. There is a positive working capital ratio when the net current assets are sufficient enough to pay the current liabilities. The opposite of this situation represents a negative working capital ratio.

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2 years ago

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