Activity-based management starts with activity analysis.The four steps in activity analysis are:

The value-added activities identified in Step 2 make up the
A)low cost solution.
B)critical path.
C)value chain.
D)optimal solution.

Question

Activity-based management starts with activity analysis.The four steps in activity analysis are:

The value-added activities identified in Step 2 make up the
A)low cost solution. 
B)critical path. 
C)value chain. 
D)optimal solution.

Quizplus · Accepted Answer

The value-added activities identified in Step 2 make up the value chain. Activity-based management aims to identify and eliminate non-value added activities in order to streamline processes and reduce costs. The value chain refers to the sequence of activities that contribute to the creation and delivery of a product or service, and identifying value-added activities within the value chain is a crucial step in optimizing business processes. Therefore, choice C is the best answer.

Activity-Based Management Starts with Activity Analysis