The Value Chain Analysis Can Be Used To

question 24

Multiple Choice

The value chain analysis can be used to:

• A)refocus the organization on its core competencies and the requirements of the customer base.
• B)focus on understanding customer needs and expectations.
• C)describe the extent to which a business has a competitive advantage.
• D)formulate strategies that place it in a favorable position relative to other companies in the industry.
• E)understand customer needs and expectations.

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Definitions:

General and Administrative Expense Budget

A financial plan that estimates the costs associated with the day-to-day operations of running a business excluding production costs.

Budget

An estimate of income and expenditure for a set period of time.

Master Budget

A comprehensive financial planning document that consolidates all of a company’s budgets for sales, production, overhead, administration, and others into one overall budget.

Safety Stock

An additional quantity of an item kept in the inventory to reduce the risk of stockouts due to uncertainties in supply and demand.