A company's strategic options for remedying cost disadvantages in internally performed value chain activities do not include:

A company's strategic options for remedying cost disadvantages in 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.


Answer: switching to activity-based costing.


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