Which of the Following Best Explains 'Value Chain Perspective

question 34

Multiple Choice

Which of the following best explains 'value chain perspective'? 

• A) Contracts are closed based on recognizing interests of key supply chain partners. 
• B) Contracts are open to any seller in the supply chain. 
• C) Contracts are closed based upon the client's key interests and requirements. 
• D) Contracts are based on interests of seller only.

---

Definitions:

Activity-based Costing

A costing method that assigns overhead and indirect costs to related products and services based on their usage of resources.

Plantwide Overhead Rate

A single overhead absorption rate used throughout a manufacturing plant for assigning overhead costs to products.

Cost Pool

A grouping of individual costs, typically by department or service center, from which cost allocations are made.

Departmental Overhead Rate

This is a method of allocating overhead costs to specific departments based on their respective proportions of an allocation base, such as machine hours or labor hours.