Value-Creating Primary Activities Include

question 115

Multiple Choice

Value-creating primary activities include

• A) purchasing raw materials and supplies.
• B) recruiting, training, developing, and compensating employees.
• C) selecting appropriate distribution channels.
• D) planning corporate strategy and setting goals.

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Definitions:

Cost Of Goods Manufactured

The total cost incurred by a company to produce goods within a specific period, including materials, labor, and overhead.

Raw Materials Inventory

The total cost of all components and materials that are not yet processed and will be used in the manufacture of products.

Work In Process Inventories

Represents partially finished goods that are in the process of being produced.

Total Manufacturing Costs

The sum of all costs directly related to the production of goods, including direct materials, direct labor, and manufacturing overhead.