Which type of accounting activities are essential for business operations but do not provide a competitive advantage?

• A. Support activities
• B. Strategic activities
• C. Core activities
• D. Value-added activities

Answer: (A)

Verified step by step guidance

1. Understand the definitions of the terms provided in the options: Support activities, Strategic activities, Core activities, and Value-added activities.
2. Support activities refer to essential accounting tasks that help maintain business operations, such as payroll processing, compliance reporting, and record-keeping. These activities are necessary but do not directly contribute to a competitive advantage.
3. Strategic activities involve long-term planning and decision-making that align with the business's goals and objectives, often aimed at gaining a competitive edge.
4. Core activities are the primary functions of a business that directly contribute to its value creation and competitive advantage, such as production or service delivery.
5. Value-added activities are processes that enhance the value of a product or service, making it more appealing to customers and contributing to competitive advantage. Based on these definitions, identify which type of activity does not provide a competitive advantage.