Value Chain Analysis Distinguishes Between Primary Activities and Support Activities

question 10

True/False

Value chain analysis distinguishes between primary activities and support activities.

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Definitions:

Inventory Turnover

A ratio showing how many times a company has sold and replaced inventory over a period.

Allowance For Doubtful Accounts

A contra-asset account that reduces the total receivables on the balance sheet by the amount expected not to be collected.

ROCE

Return on Capital Employed; a financial ratio that measures a company's profitability and the efficiency with which its capital is employed.

Operating Profit Margin

A profitability ratio calculated by dividing operating profit by total revenue, reflecting the percentage of revenue that is left over after paying for variable costs of production.