The Value Chain Consists of Value-Adding Service Delivery Strategies That

question 12

True/False

The value chain consists of value-adding service delivery strategies that are primarily operations (clinical) and marketing oriented as well as value-adding support strategies that include organizational culture, organizational structure, and strategic resources.

---

Definitions:

Markup

The amount added to the cost price of goods to cover overhead and profit, expressed as a percentage of the cost.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual units of production.

Machine-Hours

A measure of the total hours machines are operated during the production of goods.

Direct Labor-Hours

The total hours worked by employees who are directly involved in the production process, used for calculating labor costs and efficiency.