Understanding Where the Company Is Competitive Requires

question 77

Multiple Choice

Understanding where the company is competitive requires

• A) determining whether a company has a cost-effective value chain.
• B) developing quantitative strength ratings for the company and key rivals on each industry key success factor and each pivotal resource, capability, and value chain activity.
• C) identifying a company's core competencies and distinctive competencies (if any).
• D) analyzing whether a company is well positioned to gain market share and be the industry's profit leader.
• E) developing quantitative measures of a company's chances for future profitability.

---

Definitions:

Allowance for Doubtful Accounts

A contra-asset account designed to anticipate the amount of accounts receivable that might be uncollectible.

Bad Debt Expense

An accounting expense recognized when a company can no longer recover a debt that it has issued.

Bad Debt Expense

Represents the amount of receivables a company estimates it will not collect.

Allowance Method

An accounting technique used to estimate and record bad debts expense by anticipating uncollectible accounts.