Value-Creation Processes Differ from Support Processes in That Value-Creation Processes

question 61

Multiple Choice

Value-creation processes differ from support processes in that value-creation processes:

• A)provide the infrastructure for production or deliver processes to create or deliver the actual product.
• B)rarely align with the organization's core competencies and strategic objectives.
• C)generally do not add value directly to the product or service.
• D)are driven by external customer needs.

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Definitions:

Capital Budgeting

The process a business undertakes to evaluate potential major projects or investments.

Payback Period

The amount of time it takes for an investment to generate enough cash flow to recoup its original cost.

Net Cash Flow

The difference between a company's cash inflows and outflows within a specified period.

Time Value of Money

The concept that money available now is worth more than the same amount in the future due to its potential earning capacity.