Which of the Following Is a Value Creation Activity That

question 12

Multiple Choice

Which of the following is a value creation activity that falls into the category of primary activities?

• A)Creation and maintenance of information systems
• B)Customer service
• C)Human resources
• D)Logistics
• E)Company infrastructure maintenance

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Definitions:

Credit Sales

refer to sales where the customer is allowed to pay at a later date, either in a single payment or in installments.

COGS

The direct costs that are attributable to the production of the goods sold in a company, including both materials and labor costs.

Cash Cycle

The period of time it takes for a company to turn its inventory into cash flows from sales, encompassing the time frames of purchasing inventory, selling products, and collecting revenue from customers.