Firms achieve ________ through efficient procedures and excellent supply chain management.

• A. lower cost of goods sold
• B. increased accounts receivable turnover
• C. greater intangible asset value
• D. higher depreciation expense

Answer: (A)

Verified step by step guidance

1. Understand the concept of 'lower cost of goods sold': This refers to a firm's ability to reduce the expenses associated with producing or purchasing goods, often achieved through efficient procedures and excellent supply chain management.
2. Analyze the role of supply chain management: Efficient supply chain management helps firms minimize production costs, optimize inventory levels, and reduce waste, all of which contribute to lowering the cost of goods sold.
3. Evaluate the other options: Increased accounts receivable turnover, greater intangible asset value, and higher depreciation expense are not directly related to supply chain efficiency or procedural improvements.
4. Connect the dots: Efficient procedures and supply chain management primarily impact the cost structure of a firm, making 'lower cost of goods sold' the most relevant answer.
5. Conclude: Based on the analysis, the correct answer is 'lower cost of goods sold,' as it aligns with the benefits of efficient procedures and supply chain management.