Which of the Following Is TRUE Concerning the Value Chain

question 44

Multiple Choice

Which of the following is TRUE concerning the value chain of business functions?

• A)Managers should always proceed sequentially through the value chain, since distribution, for example, cannot occur before production is completed.
• B)Senior managers from individual parts of the value chain do not have a responsibility in deciding on the organization's overall strategy.
• C)An organization can only realize gains from having individual parts of the value chain work sequentially.
• D)The value chain refers to the value added to the customer from marketing.
• E)Senior managers from individual parts of the value chain have a responsibility in deciding how resources are to be obtained and used, and how rewards are to be given.

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Definitions:

Ending Inventory

The cumulative value of goods prepared for sale by the end of a bookkeeping period.

Beginning Inventory

The value of all the goods available for sale by a company at the start of an accounting period.

Average Inventory

The mean value of inventory over a certain period of time, calculated to help businesses understand inventory levels and cost of goods sold.

Ending Inventory

This is the total value of goods available for sale at the end of an accounting period, calculated by adding purchases to beginning inventory and subtracting cost of goods sold.