Manufacturing Firms Use the Value Chain to Take Steps to Improve

question 37

Multiple Choice

Manufacturing firms use the value chain to take steps to improve the overall profitability of the firm by:

• A)placing greater emphasis on the value chain.
• B)moving to an emphasis on upstream activities in the value chain.
• C)moving to an emphasis on downstream activities in the value chain.
• D)finding low-cost manufacturing locations.

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Definitions:

Allowance for Doubtful Accounts

An estimation of the amount of accounts receivable that may not be collectible.

Allowance Method

An accounting technique used to estimate and account for potential uncollectible accounts receivable and bad debts.

Net Realizable Value

The projected selling price of items subtracted by their sales or disposal expenses.

Accounts Receivable

Outstanding payments from customers to a company for goods or services already delivered but not yet compensated for.