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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Answer:
Inventory
Explanation:
A periodic inventory system is an efficient method to record the sale and purchase of inventory. It is a method which instantly using accounting software to record an entry. In the periodic inventory system, the cost of purchases is debited to an inventory account. The reason is that the purchase of goods increases the inventory, which is why the cost of purchases is debited to an inventory account.
Answer:
Explanation:
Sales Revenue:
Proceeds from sales of Chair Division = 800*85=68000
Proceeds from sales of Cusion Division = 800*32=25600
Transfer to chair division from cusion division = 800*32 = 25600
Total Sales Revenue = 119200
Variable Cost - VC
VC Chair Division (800*42) = (33600)
VC Cusion Division (1600*13)=(20800)
Transfer cost = (800*13)=(10400)
Total Contribution = 119200-33600-20800-10400=54400
Answer:
Financial literacy is a set of skills and knowledge that allows one to make effective decisions with their financial resources.
Explanation:
Why is it important? Well, being financially literate ensures financial stability and security. It also allows you to have a variety of different financial skills; such as creating a budget, understanding how credit works, being able to save for retirement, and becoming wiser with how to manage your money.
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Incremental revenue is often compared to production costs. The stained tables can be sold for $178,000.
<h3>
What is incremental revenue?</h3>
Incremental revenue is the profit that a business earns through rising sales.
It can be used to determine the additional revenue generated by a particular product, investment, or direct sale from a marketing campaign when sales value has grown.
As per the information,
the tables could be sold for $442,000 and after additional processing the tables can be sold for $620,000. The incremental revenue is equal to $620,000 - $442,000 = $178,000
Therefore,The stained tables can be sold for $178,000.
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