Analysis of a Firm's Internal Value Chain

question 72

Multiple Choice

Analysis of a firm's internal value chain:

• A)Is a systematic way of identifying opportunities for reducing costs without damaging value.
• B)Is primarily a management consultancy tool
• C)Is an unnecessary activity for experienced managers.
• D)Is a job for the accounting department.

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Definitions:

Posting

The process of transferring financial information from the journal to the respective accounts in the ledger, a crucial step in the accounting cycle.

Cash Account

A financial account that records cash transactions in and out.

Posting Reference

A code or number used in accounting to indicate the ledger account to which a transaction has been posted.

Journal Entry

A record in the books of accounts that documents a financial transaction, showing the accounts and amounts debited and credited.