Management Accounting | Assignment-4

Running head: MANAGEMENT ACCOUNTING
Management Accounting
Name of the Student:
Name of the University:
Author Note

MANAGEMENT ACCOUNTING1
Table of Contents
Answer to Question 1.................................................................................................................2
Answer to Question 2.................................................................................................................4
Answer to part 1.....................................................................................................................4
Answer to part 2.....................................................................................................................5
Answer to part 3.....................................................................................................................6
Answer to part 4.....................................................................................................................6
Answer to Question 3.................................................................................................................8
Answer to part 1.....................................................................................................................8
Answer to part 2.....................................................................................................................8
Answer to part 3.....................................................................................................................9
Answer to Question 4...............................................................................................................10
Answer to part 1...................................................................................................................10
Answer to part 2...................................................................................................................10
Answer to part 3...................................................................................................................10
Answer to part 4...................................................................................................................11
Answer to part 5...................................................................................................................11
Answer to part 6...................................................................................................................11
Answer to Question 5...............................................................................................................12
Answer to part 1...................................................................................................................12
Answer to part 2...................................................................................................................13

MANAGEMENT ACCOUNTING2
Answer to part 3...................................................................................................................15
Reference list............................................................................................................................17

MANAGEMENT ACCOUNTING3
Answer to Question 1
Value Chain Analysis is the method that helps a firm in identifying its main and
supportive activities, which help to add value to the final product. It further helps to analyse
the activities that increase its differentiation or reduce its costs. A value chain shows the
various internal activities that a firm engages itself in while changing its inputs to outputs.
Source: https://businessjargons.com
The above figure shows the classification of the value chain by Michael Porter into
nine types of activities that are interrelated to each other (Grigorescu, 2015). The primary
activities comprises of activities, which are done to fulfil external demand while secondary
activities comprises of activities, which are done to fulfil internal requirements.
Classification of Value Chain Analysis
Primary Activities
The functions of these activities are directly related in converting the input to output
and distribution functions are known as primary activities. They include-