OM's Transformation Role Is to Add Value

question 18

Multiple Choice

OM's transformation role is to add value. Value added is

• A) performing activities well for the least possible cost
• B) the net decrease between output product value and input material value
• C) increasing product value in the first stage
• D) the net increase between output product value and input material value
• E) customizing a product, regardless of expense, to satisfy customer needs

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Definitions:

Investing Activities

Transactions involving the acquisition or disposal of long-term assets and other investments not considered cash equivalents.

Financing Activities

Transactions related to raising capital or repaying investors, reflecting how a company funds its operations and growth.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing ownership equity spread among shareholders.

Liabilities

Economic obligations or debts that a business owes to others, such as loans, accounts payable, and mortgages.