In a firm's value chain upstream costs are categorized as
A)customer service costs
B)advertising costs
C)design costs
D)marketing costs
E)distribution costs

Question

Quizplus · Accepted Answer

Upstream costs refer to those related to activities that happen earlier in the production process, such as design and research and development. Choice C, design costs, fits this description best. Choices A, B, D, and E would be more likely categorized as downstream costs, related to activities that happen later in the production process.

In a Firm's Value Chain Upstream Costs Are Categorized as