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Which of the following statements about a company's supply chain is true?

A) A company's supply chain is always internal to a firm.
B) A company's supply chain is always external to a firm.
C) A company's supply chain is the same thing as a company's value chain.
D) Management accountants provide information to enhance a company's supply chain.

1 Answer

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Final answer:

The correct answer is D) Management accountants provide information to enhance a company's supply chain. Supply chains include various internal and external processes, not limited only to internal or external aspects, and management accountants contribute to its improvement.

Step-by-step explanation:

The correct answer to the question is D) Management accountants provide information to enhance a company's supply chain. A supply chain includes all the activities and processes involved in delivering a product from raw materials to the final customer. Contrary to option A and B, the supply chain is not exclusively internal or external to a firm; it encompasses both aspects. Option C is also incorrect because a company's supply chain is focused on the flow of materials, goods, and services, while a value chain refers to the full range of activities that firms go through to bring a product or service from conception to the final users. The value chain can be split, which describes how a good is produced in stages, often involving international trade and cooperation between different firms across the globe. Management accountants play a crucial role in enhancing the efficiency and effectiveness of the supply chain by providing cost analysis, financial planning, and performance metrics that help make informed decisions.

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