Which of the Following Is a Disadvantage of the Value

question 4

Multiple Choice

Which of the following is a disadvantage of the value chain process?

• A) It does not help analyze a company's strength compared to its competitors.
• B) It does not take into account firm infrastructure or human resource management.
• C) It does not help managers to identify areas in which a firm has an absolute strength.
• D) It does not span all of a firm's economic activities.

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Definitions:

Process Costing System

A process costing system is an accounting method used where identical or similar products are mass-produced, and costs are assigned to individual units of output based on the average cost.

Indirect Materials

Materials used in the production process that cannot be directly linked to a specific product, such as lubricants for machines.

Completed Goods

Products that have undergone the entire production process and are ready for sale.