Unlike the Primary Activities, the Support Activities in the Generic

question 42

True/False

Unlike the primary activities, the support activities in the generic value chain do not contribute to the production, sale, and service of the product.

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Definitions:

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, converting them into an amount of fully completed units.

Conversion Activity

The process of transforming raw materials or components into finished goods or services.

Cost Per Equivalent Unit

The calculation used in process costing to allocate costs to partially completed units, giving them the same treatment as fully completed units.

Conversion Cost

The combined costs of direct labor and manufacturing overheads, which are incurred to convert raw materials into finished goods.