The Value Chain Includes Both the Upstream and Downstream Activities

question 69

True/False

The value chain includes both the upstream and downstream activities of a business.

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Definitions:

Plant Assets

Durable physical assets employed in creating goods and services, including equipment, buildings, and machinery.

Double-Declining-Balance

A method of accelerated depreciation which doubles the rate at which an asset's book value depreciates compared to straight-line depreciation.

Salvage Value

The estimation of an asset's value at the end of its period of utility.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, representing the wear and tear or obsolescence of the asset.