Which of the Following Is Not a True Statement About

question 14

Multiple Choice

Which of the following is not a true statement about value webs?

• A)Value webs involve a collection of independent firms that use information technology to coordinate their value chains.
• B)Value webs are more customer-driven than traditional value chains.
• C)Value webs operate in a less linear fashion than traditional value chains.
• D)Value webs are inflexible and cannot adapt quickly to changes in supply and demand.
• E)Value webs involve highly synchronized industry value chains.

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Definitions:

Production Budget

A detailed plan showing the number of units that must be produced during a period in order to satisfy both sales and inventory needs.

Direct Materials Budget

A detailed plan showing the amount of raw materials that must be purchased to fulfill the production budget and to provide for adequate inventories.

Direct Labor Budget

A detailed plan that shows the direct labor-hours required to fulfill the production budget.

Production Budget

An estimate of the total amount of production, in units, that a company needs to meet its sales goals and inventory policies.