A company's strategic options for 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 internally performed value chain activities. Activity-based costing is a method of allocating overhead costs to specific activities or products, but it does not involve changing or improving the actual performance of those activities. The other options listed all involve strategic actions a company can take to improve the efficiency and cost-effectiveness of its internal value chain activities.

A Company's Strategic Options for Internally Performed Value Chain Activities