When Does OM Primarily Increase Value-Added

question 30

Multiple Choice

When does OM primarily increase value-added?

• A) During the input process
• B) During the transformation process
• C) During the output process
• D) None of these

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Definitions:

Nonoperating Items

Revenue and expenses arising from activities outside of a company's normal business operations, such as investing or financing activities.

Gross Margin

The difference between sales revenue and the cost of goods sold, expressed as a percentage of sales revenue.

Operating Expenses

Costs related to the day-to-day functions of a business, excluding the cost of goods sold.

Net Income

The amount of money a company earns after all expenses, taxes, and costs have been subtracted from total revenue.