"Total Value Transfer of Tangible Goods Happens at the Point

question 32

Multiple Choice

"Total value transfer of tangible goods happens at the point of sale." Which of the following statements contradicts this judgment?

• A)The drive to reduce costs can lead to ethically questionable decisions.
• B)Events in the external parts of the chain can also offer strategic opportunities.
• C)The value chain does not end when the buyer pays for the product or service.
• D)As the extended value chain lengthens, responsibility for harmful consequences becomes more diffuse.

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Definitions:

Implicit Costs

The opportunity costs that arise from using assets, resources, or funds to undertake an action instead of another activity, not directly recorded in financial statements.

Explicit Costs

Direct monetary expenses incurred in the course of doing business, such as wages, rent, and materials.

Peak Efficiency

The optimal point at which a particular process or system operates with maximum effectiveness or efficiency.

MC = MR

The point where Marginal Cost equals Marginal Revenue, considered the optimal point of production for maximum profit.