The Purpose of an Organization's Value Chain Is to Demonstrate

question 49

Multiple Choice

The purpose of an organization's value chain is to demonstrate how the activities

• A) structure the organization
• B) differ from the organization's competitors
• C) are integrated
• D) contribute to costs

---

Definitions:

Overhead Resources

Expenses related to the business operations that are not directly tied to a specific product or service, such as utilities, rent, and administrative salaries.

Overhead Rate

The ratio used to allocate indirect costs to products or activities, often based on labor hours, machine hours, or material costs, facilitating overhead application.

Actual Costs

The genuine costs incurred for materials, labor, and overhead in the production process or in providing a service.

Fixed Manufacturing Overhead

Costs that remain constant in total regardless of the level of production, such as salaries and rent for factory buildings.