The Value Creation Activities of a Firm Are Categorized as _____

question 24

Multiple Choice

The value creation activities of a firm are categorized as _____ and _____.

• A) primary activities; support activities
• B) strategic activities; functional activities
• C) ancillary functions; tertiary functions
• D) primary activities; core activities
• E) goal-oriented activities; organizational activities

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Definitions:

Contribution Margin

The difference between the sales price of a product and its variable costs, used to cover fixed costs and profit.

Sales Mix

The composition of different products or services sold by a company, which can significantly impact profitability based on the varying margins of each item.

Contribution Margin Ratios

The ratio of the contribution margin to sales revenue, expressing the percentage of revenue that contributes to fixed costs and profits after variable costs are covered.

R-Squared

A statistical measure that represents the proportion of the variance for a dependent variable that's explained by an independent variable or variables in a regression model.