Which of the Following Statements Concerning the Value Chain Is

question 95

Multiple Choice

Which of the following statements concerning the value chain is false?

• A) The goal of a value chain is to find areas where a company can either add value or reduce cost.
• B) The value chain focuses on the entire production process, as well as the sale of the product and service after the sale.
• C) If a company cannot compete in a specific area of the value chain, it might outsource that portion of the value chain to another entity which can perform it better.
• D) Successful firms are ones that operate within the entire value chain, thereby overseeing every aspect of the value chain for the customer.

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Definitions:

Percentage Depletion

A tax deduction method that allows an owner or operator of a mine or other natural resources to deduct a percentage of the resource's value as it is depleted.

Asset/Liability Method

An approach in accounting where income taxes are adjusted based on the differences between the financial reporting and tax bases of assets and liabilities.

Interperiod Tax Allocation

The process of apportioning income tax expenses between different accounting periods to match tax expense with the revenue that generated the tax.

Intraperiod Tax Allocation

The process of allocating income taxes within a single financial reporting period among different items that directly affect reported net income or loss.