Identifying the Primary and Secondary Activities That Comprise a Company's

question 59

Multiple Choice

Identifying the primary and secondary activities that comprise a company's value chain

• A)indicates whether a company's resource strengths will ultimately translate into greater value for its shareholders.
• B)reveals whether a company's resource strengths are well-matched to the industry's key success factors.
• C)is the first step in understanding a company's cost structure (since each activity in the value chain gives rise to costs).
• D)is called benchmarking.
• E)is called resource value analysis.

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Definitions:

Financial Accounting

The field of accounting focused on the summary, analysis, and reporting of financial transactions relating to a business.

Management Accounting

A branch of accounting that focuses on the preparation and analysis of financial information for internal decision-makers within an organization.

Insignificant Variance

A financial term referring to small differences between expected and actual figures that are not considered material for decision-making purposes.

Cause

A reason for an action or condition, or something that brings about an effect or result.