Value Chain Management Includes Only Primary Activities and Excludes Support

question 151

True/False

Value chain management includes only primary activities and excludes support activities.

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Definitions:

Product Costs

The total costs associated with manufacturing a product, including direct labor, direct materials, and manufacturing overhead.

Opportunity Costs

The advantages forgone by selecting one option instead of another.

Fixed Cost

Costs that do not vary with the level of production or sales, such as rent or salaries.

Indirect Costs

Costs that are not directly traceable to a specific product or activity, such as overhead and administrative expenses.