Value Chain Analysis Is a Tool Used To

question 60

Multiple Choice

Value chain analysis is a tool used to:

• A) analyze a firm's external environment for value-creating opportunities.
• B) analyze a firm's value chain activities and support functions in isolation from its competitors' value chain.
• C) understand the parts of the firm's operation that create value and those that do not.
• D) identify the firm's core competencies in each of the primary activities of the firm.

Recognize the role and charging mechanism of direct materials, work in process, and finished goods in the cost accounting cycle.

Understand how factory labor costs, including direct and indirect (manufacturing overhead) labor costs, are accounted.

Grasp the treatment of manufacturing overhead costs, including pre-determined rates, application, and the adjustment of over/under applied overhead.

Comprehend the significance of costing inventory according to GAAP, including the perpetual and periodic inventory systems.

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Definitions:

S&P's BBB

A credit rating by Standard & Poor's that indicates an investment grade with moderate credit risk.

Bond Ratings

A system used to assess the credit quality and risk level of bonds, typically assigned by rating agencies.

Sinking Fund Provisions

A requirement for a debtor to set aside funds at regular intervals to repay a bond or loan before its maturity in order to ensure the safety of the investment for creditors.

Bond Issue

The process by which a government or corporation raises funds by issuing bonds to investors, who lend them money in exchange for periodic interest payments and the return of principal at maturity.