Value Chain Analysis Is Similar to Value Stream Analysis Only

question 36

True/False

Value chain analysis is similar to value stream analysis only value chain analysis has more specific activity groups based on functional roles.

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Definitions:

Economic Value Added

A measure of a company's financial performance based on the residual wealth calculated by deducting cost of capital from its operating profit.

Capital Employed

The total value of all assets used in a business to generate profits, typically calculated as equity plus non-current liabilities.

Economic Value Added

A financial performance metric that calculates the value a company generates from its capital investments, beyond the cost of capital.

Weighted Average Cost Of Capital

The overall rate of return that a company is expected to pay on average to all its security holders to finance its assets.