Which of the following is incorrect with regard to value chain analysis?
Answer(s): D
Choice "d" is an incorrect statement and the correct choice. The best description of a value chain is that value starts with the suppliers who provide the raw materials for a production process, continues with the firm and its strategic plan, continues with the value created by the customers, and then ends with the disposal and recycling of the materials. Choices "a", "b", and "c" are incorrect, as all are correct statements with regard to value chain analysis.
According to Michael Porter, which of the following are the two major categories of business activities?
Answer(s): C
Choice "c" is correct. According to Michael Porter, the two major categories of business activities are primary activities and support activities.Choices "a", "b", and "d" are incorrect, per the above statement.
Which of the following activities is considered a support activity?
Answer(s): B
Choice "b" is correct. Support activities are those activities that are performed by the support staff of an organization (e.g., purchasing of materials and supplies, development of the technology used, management of employees, accounting, finance, strategic planning, etc.). Choices "a", "c", and "d" are incorrect, as these are all considered primary activities. Primary activities are those that are involved with the direct manufacture of products, the delivery of products through distribution channels, and the support of the product that exists after the sale is made (e.g., handling the raw materials, the manufacturing process, taking orders for the product,advertising the product, and servicing the product after it is sold).
When applying value chain analysis, a firm sends its production manager to visit the operations of its major supplier in an attempt to determine if there are cost-savings capabilities that could be implemented at the supplier's warehouse. The firm is performing which form of value chain analysis?
Choice "c" is correct. Analyzing the vertical linkage of a firm means understanding the activities of the suppliers and buyers of the product and determining where value can be created external to the firm's operations.Choices "a", "b", and "d" are incorrect, per the above Explanation.
Which of the following is not a type of major strategic framework that has proven useful for value chain analysis?
Choice "b" is correct. Customer preference analysis is not a major strategic framework that has been proven to be useful for value chain analysis.Choices "a", "c", and "d" are incorrect, as the three major types of strategic frameworks that have been proven to be useful for value chain analysis are industry structure analysis, core competencies analysis, and segmentation analysis.
Post your Comments and Discuss AICPA CPA-Business exam prep with other Community members:
Our website is free, but we have to fight against AI bots and content theft. We're sorry for the inconvenience caused by these security measures. You can access the rest of the CPA-Business content, but please register or login to continue.