The Value Chain Model

question 54

Multiple Choice

The value chain model:

• A)categorizes five related advantages for adding value to a firm's products or services.
• B)sees the supply chain as the primary activity for adding value.
• C)categorizes four basic strategies a firm can use to enhance its value chain.
• D)highlights specific activities in the business where competitive strategies can best be applied.
• E)enables more effective product differentiation.

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Definitions:

Merchandise Purchases

The acquisition of goods that a company intends to sell in its normal course of business; this includes goods bought for resale.

Cost Of Goods

The total direct costs attributable to the production of the goods sold by a company.

Budgeted Sales

Projected or estimated sales for a future period, usually based on past sales data, market analysis, and growth projections.

Master Budget

A comprehensive financial plan for a company's future operations, including multiple subsidiary budgets.