To build an understanding of the cost base is accomplished by working through the various zones within an organization's ______ and determining the cost composition of each.
A) value chain
B) departments
C) functions
D) divisions
E) units

Question

Quizplus · Accepted Answer

The cost base can be understood by working through the various value chain zones within an organization and determining the cost composition of each. The value chain includes all the activities involved in creating and delivering a product or service, including procurement, production, marketing, sales, and customer service. By understanding the costs associated with each of these value chain zones, an organization can gain a better understanding of its cost base and where cost reductions or optimizations may be possible.

To Build an Understanding of the Cost Base Is Accomplished