The Process Whereby a Firm Determines the Costs Associated with Organizational

question 8

Multiple Choice

The process whereby a firm determines the costs associated with organizational activities from purchasing raw materials to manufacturing products to marketing those products is called

• A) The Resource-Based Approach.
• B) Value Chain Analysis.
• C) Strategic Cost Analysis.
• D) The Internal Factor Evaluation Matrix.
• E) Cost-Benefit Analysis.

---

Definitions:

Marginal Cost

The increase in total cost that arises from an extra unit of production, emphasizing the cost variability.

Total Cost

The sum of all costs associated with producing a certain quantity of goods or services, including both fixed and variable costs.

Computer Software

Programs and other operating information used by a computer to perform specific tasks.

Variable Cost

Costs that vary directly with the level of production or output in a company, such as raw materials and labor expenses.