A company's strategic options for remedying cost disadvantages in internally performed value chain activities do not include
A)revamping its value chain to eliminate or bypass some cost-producing activities (particularly low value-added activities).
B)implementing the use of best practices, particularly for high-cost activities.
C)investing in productivity-enhancing, cost-saving technological improvements.
D)switching to activity-based costing.
E)outsourcing the performance of high-cost activities to vendors that can perform them more cheaply.

Question

Quizplus · Accepted Answer

Switching to activity-based costing is not a strategic option for remedying cost disadvantages in internally performed value chain activities. Activity-based costing is a cost accounting method used to allocate costs to specific activities or processes based on their use of resources, not a solution to reduce costs in value chain activities. The other options listed are valid strategic options for remedying cost disadvantages in internally performed value chain activities.

A Company's Strategic Options for Remedying Cost Disadvantages in Internally