With Its Focus on Value-Creating Activities,the Value Chain

question 96

Multiple Choice

With its focus on value-creating activities,the value chain:

• A) is an ideal tool for examining how a company delivers on its customer value proposition.
• B) preserves cost structure advantages.
• C) provides identification of customer differentiation shortfalls.
• D) is a recognized method for classifying the relevant support activities that are relevant to operations tasks.
• E) is crucial in understanding cost disadvantages and economies of scale and scope shortfalls.

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Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when a decision is made to choose one option over another.

Production Possibilities Curve

A graphical representation showing the maximum quantity of goods and services that a society can produce with existing resources and technology, underlining the concept of opportunity cost.

Consumer Goods

Goods produced for direct consumption by the end customer, as opposed to goods used in the production of other goods.

Capital Goods

Physical assets that are used in the production of other goods and services and have a life expectancy of more than one year.