The Primary Activities Included in the Value Chain Include

question 21

Multiple Choice

The primary activities included in the value chain include

• A) supply chain management,operations,distribution,sales and marketing,and customer service activities.
• B) product R&D,technology and systems development.
• C) human resource management.
• D) general administration.
• E) All of these.

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Definitions:

Net Operating Income

The net profit of a company, calculated by deducting operating expenses from the gross profit.

Absorption Costing

A financial recording strategy that encompasses all costs related to production, such as raw materials, labor directly associated with the production, and all overhead expenses, whether they vary or are fixed, as part of a product's cost.

Variable Costing

An accounting method where only variable manufacturing costs are included in product costs, with fixed overhead expenses treated as period costs.

Variable Costing

This costing method includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs.