Collectively, all costs such as distribution, marketing, and design are part of
A)downstream activities.
B)fixed costs.
C)the value chain.
D)manufacturing costs.

Question

Quizplus · Accepted Answer

The value chain includes all activities involved in the creation and delivery of a product or service, including manufacturing, distribution, marketing, and design. Therefore, collectively, all costs such as distribution, marketing, and design are part of the value chain. Downstream activities typically refer to the activities involved in delivering the product to the end customer, such as distribution and marketing, so choice A is not correct. Fixed costs are costs that do not vary with the level of production or sales, so this does not accurately describe the costs mentioned in the question, ruling out choice B. Manufacturing costs typically refer to the costs involved in producing the product itself and not the other activities mentioned in the question, making choice D incorrect.

Collectively, All Costs Such as Distribution, Marketing, and Design Are