Using the Value Chain Model, Which of the Following Primary

question 66

Multiple Choice

Using the value chain model, which of the following primary activities is performed last, as inputs are transformed into outputs?

• A) R&D
• B) Marketing and sales
• C) Production
• D) After-sales service and support
• E) Human resources

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Definitions:

Variable Costing

An accounting method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in the cost of goods sold, excluding fixed manufacturing overhead.

Contribution Margin

The gap between sales income and variable expenses, showing the extent to which income aids in offsetting fixed expenses and creating earnings.

Cost-Volume-Profit

An analysis tool used to determine how changes in costs and volume affect a company's operating income and net income.

Sales Volume

The total quantity of products or services sold by a company during a specific period of time.