Overhead costs associated with the number of layers of management in a firm are part of the ________ activities of the value chain.
A) human resources management
B) firm infrastructure
C) operations
D) marketing and sales

Question

Quizplus · Accepted Answer

Exhibit 5.3 draws on the value-chain concept to provide examples of how a firm can attain an overall cost leadership strategy in its primary and support activities. Reducing management layers to reduce overhead costs is the support activity associated with the firm infrastructure.

Overhead Costs Associated with the Number of Layers of Management