Using the Value-Chain Model, Which of the Following Primary Activities

question 42

Multiple Choice

Using the value-chain model, which of the following primary activities is performed last, as inputs are transformed into outputs?

• A) Research and development
• B) Marketing and sales
• C) Logistics
• D) Production
• E) Customer service

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Definitions:

Collecting Accounts

The process of managing the collection of revenues or receivables from clients or customers.

Operating Cycle

The duration it takes for a company to purchase inventory, sell it, and then convert the sales back into cash. It reflects the efficiency with which a company can turn its product into cash.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period, indicating efficiency in managing stock.

Accounts Payable

The amount of money that a company owes to its suppliers or creditors for goods and services received but not yet paid for.