The suppliers and production component of the value chain would include all of the following costs except:
A)Direct production labor.
B)Production set-up.
C)Salaries for sales personnel.
D)Receipt of direct materials from suppliers.

Question

Quizplus · Accepted Answer

Salaries for sales personnel are not part of the production component of the value chain. The production component includes costs directly related to the production process such as direct production labor, production set-up, and receipt of direct materials from suppliers. Sales personnel are part of the selling and distribution component of the value chain, which comes after the production component.

The Suppliers and Production Component of the Value Chain Would