Downstream costs for a service entity include:
i. design.
ii. research and development.
iii. distribution.
iv. customer support.
A) i
B) i and ii
C) i, ii and iii
D) iv

Question

Quizplus · Accepted Answer

Downstream costs refer to the expenses incurred after the product/service is created and involves activities such as distribution, customer support, etc. Design and research and development are considered upstream costs. Therefore, only option D, customer support, is a downstream cost.

Downstream Costs for a Service Entity Include