Activities in the Value Chain Are Classified as Value-Added or Non-Value-Added

question 50

True/False

Activities in the value chain are classified as value-added or non-value-added in many organizations.

---

Definitions:

Marginal Cost

The increase in cost caused by producing one additional unit of a good or service.

Average Total Cost

The total cost of production divided by the quantity of output produced, encompassing both fixed and variable costs.

Average Total Cost

The total cost of production divided by the number of units produced, measuring the cost per unit of output.

Fixed Costs

Business expenses that remain constant regardless of the level of production or sales.