What Key Benefit Results from Using Value- Creation Profile Charts

question 9

Multiple Choice

What key benefit results from using value- creation profile charts to review current SBU activities?

• A) They identify ways of minimising returns.
• B) They extend the planning horizon.
• C) They may reveal particular product or customer categories that destroy wealth.
• D) They may reveal areas in which borrowing can be increased.

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Definitions:

Cost of Goods Manufactured

The total cost incurred by a company to produce goods in a specific period, including labor, materials, and overhead.

Job-Order Costing

A cost accounting system used to accumulate costs per job or order rather than a process, suitable for customized orders.

Cost of Goods Manufactured

The total cost incurred to produce products during a specific period, including materials, labor, and overhead.

T-Account

A graphical representation of a general ledger account, used in accounting to depict the effects of transactions on each account.