The cost of the business process is the sum of the cost of the inputs and the ________.
A) cost of the activities
B) cost of the outputs
C) value of the outputs
D) value of the products
E) cost of the products

Question

Quizplus · Accepted Answer

The cost of a business process is calculated by adding the cost of inputs, such as labor, materials, and overhead, to the cost of activities necessary to transform those inputs into outputs. The cost of outputs or products is not necessarily included in the cost of the process as it represents the revenue generated by the process. The value of the outputs is also not typically included in the cost calculation. Therefore, the correct answer is A) cost of the activities.

The Cost of the Business Process Is the Sum of the Cost