Refer to the Scenario Below to Answer the Following Questions

question 31

Multiple Choice

Refer to the scenario below to answer the following questions.
Value Chain Management (Scenario)
Randy is the new strategic manager for Solutions Tech Inc., a management consulting firm dedicated to assisting small businesses in the pursuit of success. He is currently in a meeting with Rob, who is the owner of a successful small business that creates computer displays for large-scale production facilities. Randy is reviewing the business strategy at Rob's business and has some recommendations.
-Randy tells Rob that the value chain management approach radically changes organizational processes. Rob asks Randy if he could elaborate on this point a bit more. Randy says "when managers decide to manage operations using value chain management, old processes are no longer appropriate. Managers must critically evaluate all organizational processes to determine where value is being __________."

• A) subtracted
• B) added
• C) lost
• D) removed
• E) filtered

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Definitions:

Gross Price Method

A pricing approach where the price of goods or services is determined without deducting any trade discounts or allowances.

Cost Index

An index that measures the change in the cost of a basket of goods or services over time, often used in business and economics to track inflation or deflation.

Inventory-Pool Method

A technique in accounting used to group similar inventories together to simplify valuation and cost calculations.