Which of the Following Is a Primary Activity in the Value

question 4

Multiple Choice

Which of the following is a primary activity in the value chain?

• A) receiving and handling of raw materials and other inputs
• B) negotiating prices with vendors
• C) finding suitable vendors to supply raw materials
• D) setting up contractual arrangements with various suppliers
• E) investigating new designs

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Definitions:

LIFO Method

An inventory valuation method that stands for "Last In, First Out," assuming that the most recently produced items are sold first.

Cost of Goods Sold

The immediate financial costs tied to the manufacture of goods a company sells, including labor and materials.

Merchandise Inventory

Goods or products that a company holds for the purpose of selling to customers in the ordinary course of business.

Damaged Goods

Items that are physically harmed and are reduced in value, typically making them unsellable at full price.