A Supporting Activity in a Value Chain Is Best Described

question 17

Multiple Choice

A supporting activity in a value chain is best described as

• A) information technology related activities.
• B) activities that do not require manual labor.
• C) activities that support the primary activities in a value chain.
• D) activities that add no value to a value chain.
• E) maintenance related activities.

Recognize the treatment and recording of employee benefits, such as vacation pay and pension rights.

Understand the fundamentals of pension plans and their financial statement implications.

Understand and calculate the quick ratio to assess a company's ability to meet its short-term obligations without selling inventory.

Identify the components of quick assets.

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Definitions:

Service Department Charge Rate

The rate at which internal service departments charge other parts of the same organization for the services rendered.

Accounting Department

The division within a company responsible for managing financial records, ensuring compliance with accounting standards, and producing financial statements.

Service Department Cost

Involves the expenses associated with the departments that do not directly produce goods but provide support or services to other departments within an organization.

ABC Corporation

A hypothetical or generic naming convention used to represent a company in examples or case studies.