The Goal of Value Chain Analysis Is to Identify Processes

question 102

Multiple Choice

The goal of value chain analysis is to identify processes in which the firm can add value for the customer and create a competitive advantage for itself,with a ________ or ________________.

• A) focused strategy, product differentiation
• B) focused strategy, cost advantage
• C) cost advantage, primary value activities
• D) cost advantage, product differentiation

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Definitions:

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead to individual units of production, based on a related activity base.

Machine-hours

A measure of the amount of time machines are used in the production process, often used as an allocation base for applying manufacturing overhead.

Job T629

A unique identifier for a specific job, task, or project within a job-order costing system, potentially representing a particular order or production batch.

Machine-hour

A unit of measure representing the operation of machinery for one hour, often used as a basis for allocating manufacturing overhead costs.