Primary Activities of a Firm's Value Chain Refers to

question 7

Multiple Choice

 Primary activities of a firm's value chain refers to

• A) the activities completed to improve a firm's product and the processes used to manufacture it.
• B) the activities involved with recruiting, hiring, training, developing, and compensating all personnel.
• C) the activities such as general management, planning, finance, accounting, legal support, and governmental relations.
• D) the activities involved in the physical creation of a product and its sale and transfer to the buyer.

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Definitions:

Composite Units

A measure used in accounting to bundle goods or services together for the purposes of inventory management, costing, or sales analysis.

Fixed Costs

Costs that remain constant regardless of a business's operational levels, like lease payments, wages, and coverage fees.

Break-Even Point

The point at which total costs and total sales are equal, resulting in no net loss or gain for the business.

Contribution Margin

The gap between income from sales and variable expenses, which is utilized to pay for fixed expenses and produce earnings.