A Value Chain Consists of the Major Subassemblies That Add

question 48

True/False

A value chain consists of the major subassemblies that add value to a product.A value chain is a set of activities that transforms raw resources into the goods and services end users purchase and consume.

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Definitions:

Required Rate

The minimum return that investors expect to earn from an investment, determining the value of an investment.

Variable Cost

Costs that vary directly with the level of production or output, such as raw materials and labor expenses, adjusting as the volume of production increases or decreases.

Credit Policy

Guidelines that a company follows to determine the creditworthiness of customers and the terms and conditions for extending credit.

Incremental Cash Flow

The extra money a company gains by embarking on a project or investment.