Value Activities Can Best Be Defined As

question 58

Multiple Choice

Value activities can best be defined as:

• A)Activities that firms in the industry must perform to improve a product.
• B)Activities that firms in the industry must perform in the process of converting raw material to final product, including customer service.
• C)Activities that firms in the industry must perform in the process of closing down a product line, including customer service.
• D)Activities that firms in the industry must perform to consider ways of marketing a product.
• E)Activities that firms in the industry must perform in the process of considering new products, including customer service.

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Definitions:

Economic Value Added

A measure of a company's financial performance based on the residual wealth calculated by deducting its cost of capital from its operating profit.

Return On Investment

A measure used to evaluate the efficiency of an investment, calculated as net profit divided by the cost of the investment.

Capital Turnover

A ratio that shows how efficiently a company uses its capital assets to generate sales revenue.

Invested Capital

The total amount of money that has been deployed in a company, including both debt and equity financing.