The sequential business activities that add utility or value to a product or service for customers are categorized as ___________?
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Answer: A. value chain
Explanation
The value chain represents the sequence of business functions that add utility or value to a product or service. This chain spans from initial research and development through production, marketing, and customer service. Managing each link efficiently maximizes overall customer value and profitability. Proposed by business strategists, the value chain framework divides a firm's activities into primary and support functions. Primary functions include inbound logistics, operations, outbound logistics, marketing, and service. Support functions include infrastructure, human resources, and technology development.
Corporate executives analyze the value chain to identify cost reduction opportunities and competitive advantages. It helps firms determine which activities to keep in-house versus outsourcing. Options B, C, and D use incorrect modifiers like useful, product, or services instead of the established economic term value chain.
- Subject
- Accounting and Finance
- Category
- Accounting
- Topic
- —
- Difficulty
- medium
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