A Value Chain Differs from a Supply Chain in That

question 70

Multiple Choice

A value chain differs from a supply chain in that a value chain:

• A) is a system of people, activities, information, and resources involved in creating a product and moving it to the customer.
• B) charts the path by which products and services are created and eventually sold to customers.
• C) is a broader concept than a supply chain.
• D) concept is fixated on how fast products can be made available to consumers.
• E) creation requires the components of agility, adaptability, and alignment.

---

Definitions:

Contingent Liability

A potential obligation that may arise in the future, dependent on the occurrence of a specific event.

Financial Statement

Documents that provide an overview of a company's financial condition, including balance sheets, income statements, and cash flow statements.

Expense Recognition Principle

An accounting standard that expenses should be recognized in the period in which they are incurred, regardless of when payment is made.

Warranty Costs

Expenses incurred by a company to repair or replace products under warranty.