A Value Chain Is a Set of Logically Sequenced, Value

question 46

True/False

A value chain is a set of logically sequenced, value adding activities that convert input resources into products or services in a manner consistent with the chosen business strategy.

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Definitions:

Surplus

The amount by which a company's income exceeds its spending, or in a broader sense, an excess of assets over liabilities.

Conversion Costs

The combined costs of direct labor and manufacturing overhead incurred to convert raw materials into finished products.

Direct Labor Cost

The total cost of all the labor directly involved in the production of goods or services, excluding indirect expenses such as supervisor salaries and utilities.

Factory Overhead Cost

Indirect manufacturing costs not directly tied to the production of goods, such as utilities and rent for the production facility.