Value-Chain Analysis Is Used to Identify Activities That Represent, or Can

question 57

Multiple Choice

Value-chain analysis is used to identify activities that represent, or can develop into, the core competencies of a business. Who introduced this concept?

• A) Ford
• B) Toyota
• C) Porter
• D) Smith
• E) None of the above

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Definitions:

Direct Labor

The wages and salaries of employees who are directly involved in the production of goods or services.

Manufacturing Overhead

All manufacturing costs that are not directly associated with the production of goods, such as utilities, rent, and salaries for managers.

Direct Materials

The raw materials that can be physically and directly associated with manufacturing the end product.

Factory Overhead

All indirect costs associated with the production process, such as salaries for supervisors and costs for utilities, not directly attributed to specific units of products.