Value-Chain Analysis Can Be Used to Determine If a Business

question 56

Multiple Choice

Value-chain analysis can be used to determine if a business is adding unique value in which of the following areas?

• A)product research
• B)human resources
• C)process innovation
• D)quality management
• E)all of the above

Analyze the impact of manufacturing cost reductions on product pricing and profitability.

Assess the role of competition-based pricing in setting product prices.

Understand the concept of contribution margin and contribution per machine hour.

Comprehend the principle of target costing.

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Definitions:

Pledging Accounts Receivable

The use of accounts receivable as collateral for a loan.

With Recourse

A term indicating that the seller of the receivable is liable if the debtor fails to pay the owed amount.

Fair Value Designation

The process of assessing the estimated market value of an asset or liability, based on current market conditions and not the historical cost.

IFRS Qualifying Criteria

Specific conditions and standards companies must meet to comply with International Financial Reporting Standards.