Creating Customer Value And Factors Affecting External Environment


1. Which one of the following statements is correct?

A. Value creation is important only in the private sector because there are shareholders where as in the public sector, the strategic management accountant needs to focus on best practice management

B. A company that creates customer value will be profitable because customers are willing to pay a premium.

C. A business must choose between creating customer value and creating shareholder value because the more value it provides to the customer, the less profit it creates for the shareholder.

D. An organization can increase shareholder value without increasing its prices, by reducing costs through effective value chain configuration.

2.  The board of Brasher Ltd has decided to consider the external environment and its effect on the organization. Their strategic management accountant has been asked to provide relevant information to support this analysis. This information is most likely to include which one of the following?

A. Estimates of competitor profitability and cost structures, and the pricing approaches of suppliers.

B. Product life cycle costing and customer profitability analysis

C. Key performance indicators including non-financial measures that consider a balanced score card perspective.

D. Large capital expenditure requests for new information technology to compete more effectively with competitors in the industry.


These multiple choice questions belong to Corporate Strategy and the 1st question is about finding the correct statement about creating customer value and the 2nd question is about external environment and its effect on the organization.

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