Which of the following explains the 'Value Chain margin'?
A) Composed of value activities and a margin which is achieved by these activities. The margin represents the value that customers want to pay extra for the company's efforts compared with the costs that were required for these.
B) Composed of value activities which can be divided into primary activities and support activities.
C) Composed of value activities and a margin which is achieved by these activities. Value activities can be divided into primary activities and support activities
D) Composed of value activities and a margin which is achieved by these activities.

Question

Which of the following explains the 'Value Chain margin'? 
A) Composed of value activities and a margin which is achieved by these activities. The margin represents the value that customers want to pay extra for the company's efforts compared with the costs that were required for these. 
B) Composed of value activities which can be divided into primary activities and support activities. 
C) Composed of value activities and a margin which is achieved by these activities. Value activities can be divided into primary activities and support activities 
D) Composed of value activities and a margin which is achieved by these activities.

Quizplus · Accepted Answer

The value chain margin represents the difference between the value created by the company's value activities and the costs of performing those activities. Customers are willing to pay a premium for the value created, which results in a margin for the company. This margin is achieved through the various value activities carried out by the company.

Which of the Following Explains the 'Value Chain Margin