Which of the Following BEST Describes the Value Chain

question 29

Multiple Choice

Which of the following BEST describes the value chain?

• A) A management information system which tracks the costs of products through the manufacturing process
• B) The minimizing of inventory levels to reduce storage, insurance and finance costs
• C) All activities that contribute to the continuous improvement of business operations
• D) The whole sequence of activities that add value to the goods and services sold to end-users

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Definitions:

Overapplied Overhead

Occurs when the allocated overhead costs exceed the actual overhead costs incurred.

Net Operating Income

Represents the profit earned from a company's core business operations, excluding expenses and revenues from non-operating activities.

Job-Order Costing

A cost accounting system that assigns manufacturing costs to an individual product or batch of products, typically used when the products being produced are sufficiently different from each other.

Work in Process Inventory

The total value of all partially completed goods or work that is not yet finished within a production process.