Subtracting the Purchase of Intermediate Products from the Value of the Sales

question 78

Multiple Choice

Subtracting the purchase of intermediate products from the value of the sales of final products determines the amount of:

• A)net investment for a business.
• B)profit and cost.
• C)value added from the economic activity.
• D)surplus or deficit from the economic activity.

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Definitions:

Order Fulfillment

The complete process from point of sale to delivery of a product to the customer, encompassing receiving, processing, packing, shipping, and handling of returns.

Supply Chain

A network between a company and its suppliers to produce and distribute a specific product to the final buyer, encompassing all stages of processing, transportation, and storage.

Flows

The movement or transfer of goods, services, money, or information between processes or locations.

Direction

Guidance or supervision towards the execution of tasks or strategic plans within an organization or project.