Which of the following cost management tools supports the firm's concentration on the delivery of value to the customer?
A) service industry growth
B) global competition
C) preparing an earnings report for external reporting
D) value-chain analysis

Question

Quizplus · Accepted Answer

Value-chain analysis is a cost management tool that focuses on identifying activities within the business that add value to the product or service being delivered to the customer. By analyzing the value chain, the firm can identify areas where costs can be reduced or eliminated, while still maintaining or improving the value delivered to the customer. This tool helps the company concentrate on delivering value to the customer, which ultimately supports the firm's long-term success. The other options mentioned, such as service industry growth, global competition, and preparing an earnings report, do not directly support the firm's concentration on delivering value to the customer.

Which of the Following Cost Management Tools Supports the Firm's