Question: What is a value chain? Examine the sample value chain presented in Figure 6-3 and describe how breakdowns in various parts of the value chain

What is a value chain? Examine the sample value chain presented in Figure 6-3 and describe how breakdowns in various parts of the value chain can affect management assertions about classes of transactions on the financial statements.

Figure 6-3

Procurement and Supply Chain Management (Transportation Services, Materials, Energy, Parts & Supplies, Media Services, Supplies, Travel, Computer Services) Human Resource Management (Recruiting, Training) Technology and Information Management (Design of Automated Systems, Component Design, Assembly Design, Machine Design, Testing Procedures, Market Research, Sales Materials, Information Systems) MARGIN Inbound Logistics Operations (Fabrication, Marketing and Sales Outbound Service Logistics (Service Reps, (Materials Assembly, (Advertising, (Order Spare Parts) Handling, Testing, Promotion, Processing, Inspection, Maintenance) Sales Force) Shipping, Parts Delivery) Billing)

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