In Value-Chain Analysis,the Activities of an Organization Are Divided into Two

question 50

Multiple Choice

In value-chain analysis,the activities of an organization are divided into two major categories of value activities: primary and support.Which of the following is a primary activity?

• A) purchasing key inputs
• B) repairing the product for the consumer
• C) recruiting and training employees
• D) monitoring the cost of producing the product through a cost accounting system

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Definitions:

Operating Profit

The income generated from the primary activities of a business before subtracting any tax and interest expenses.

Retail Selling Price

The price at which goods or services are sold to the final consumer, including any markups applied by retailers.

Profit

The financial gain obtained when the revenue generated from a business activity exceeds the expenses, costs, and taxes associated with it.

Wholesale Price

The cost at which goods are sold to retailers by manufacturers or distributors before any retail markup.