Place the Four Components in the Order They Appear Along

question 68

Multiple Choice

Place the four components in the order they appear along the value chain: A = Customer service; B = Design; C = Distribution; and D = Production.

• A) ABDC
• B) ACDB
• C) BDCA
• D) BADC

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Definitions:

Revenue

The total amount of money received by a company for goods sold or services provided during a certain time period.

Manufacturing Overhead

This consists of all the indirect costs related to manufacturing that cannot be directly traced to specific units produced, such as electricity for the factory or maintenance expenses.

Administrative Costs

Expenses related to the general operations of a business, including salaries of senior executives, office supplies, and utilities.

Direct Material

Raw materials that are directly traceable to the manufacturing of a product and are integral to its production.