The value chain is a key component of contemporary management accounting. Required:Define the term "value chain" and explain how it would relate to an airline.
What will be an ideal response?
The value chain is a set of activities that work together to create value for an organization. With a manufacturer, for instance, activities that range in scope from securing raw materials, to production, to delivery of products will culminate in goods that boost a firm's bottom-line profitability.
Activities in a value chain for an airline would include reservations and ticketing, maintenance, baggage handling, marketing, customer service, frequent-flyer programs, and, of course, flight operations.
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The primary objectives of investing in temporary investments is to
a. all of these b. realize gains from increases in market price of the securities c. receive dividends d. earn interest revenue
Volkswagen's business environment includes a significant wage differential between Mexico and Germany
Indicate whether the statement is true or false
U.S. GAAP and IFRS provide criteria for distinguishing operating leases from capital leases. Which of the following is not true?
a. The criteria attempt to identify the entity, whether lessor or lessee, that enjoys the benefits and incurs the risk of the leased asset. b. When the lessor enjoys the benefits and bears the risk, the lease is a capital lease. c. When the lessee enjoys the benefits and bears the risk, the lease is a capital lease. d. IFRS provides more general criteria for identifying the entity enjoying the rewards and incurring the risk. e. Firms cannot currently apply the fair value option to capital leases.
In process costing there is never a balance remaining in Factory Overhead that needs to be closed at period end.
Answer the following statement true (T) or false (F)