A Support Department Adds Value Directly to a Product or Service

question 169

True/False

A support department adds value directly to a product or service, which is observable by the customer.

---

Definitions:

Generates Revenue

The process or activities that result in income being brought into a company, such as sales of goods or provision of services.

Incurs Costs

To incur costs means to recognize or accumulate expenses through activities or operations, leading to a reduction in profits.

Dollar Gross Profit

The total monetary gain computed by subtracting the cost of goods sold from the sales revenue of a company.

Net Sales

Gross sales less sales returns and allowances less sales discounts.