_____ Systems Help a Firm Manage Aspects of Its Value

question 56

Short Answer

_____ systems help a firm manage aspects of its value chain, from the flow of raw materials into the firm, through delivery of finished products and services at the point-of-consumption.

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Definitions:

Opportunity Cost

The price paid for missing out on the alternative that ranks second best when deciding.

Excess Capacity

Refers to a situation where a company has more production ability than is necessary for the current level of demand.

Differentiation Value

The perceived value added to a product or service that makes it stand out from competitors.

Markup Percentage

The percentage added to the cost of a product to calculate the selling price, based on desired profit.