Explain How Value Chain Analysis Helps Managers Identify Value-Added and Non-Value-Added

question 9

Essay

Explain how value chain analysis helps managers identify value-added and non-value-added activities.

Distinguish between the concepts of gross margin, contribution margin, and net income.

Learn how cost behavior analysis helps to predict changes in costs over different levels of activity.

Interpret financial data to determine gross margin, net income, and contribution margin.

Understand and apply different methods (scattergraph, high-low, least-squares regression) for estimating costs.

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Definitions:

Erroneous Generalizations

Unfounded assertions that inaccurately extend conclusions from a sample to an entire population.

Playing with Numbers

Refers to engaging in mathematical calculations or analysis, often in a non-serious or exploratory manner.

Percentages

A fraction or ratio expressed as part of one hundred, used to quantify relative proportions or to compare values.

Computer Scoring

The evaluation or grading of responses, such as essays or test answers, by computer algorithms rather than human graders.