The lineup of value-added activities from lowest to highest for a firm is often called:
A) the value-added formula.
B) the effective operational accounting equation.
C) the value-added tax.
D) the value chain for the product.

Question

Quizplus · Accepted Answer

The term "value chain" is used to describe the series of activities that a firm undertakes in order to create a product or service. This value chain includes both primary activities (such as production, marketing, and distribution) and support activities (such as research and development, information technology, and infrastructure). The order of these activities from lowest to highest value added is the value chain for the product.

The Lineup of Value-Added Activities from Lowest to Highest for a Firm