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

Question

Quizplus · Accepted Answer

Upstream costs refer to the expenses incurred by a company in creating and developing its products or services. Design and research and development are two of the most important upstream costs, as they involve creating and refining the product or service. Distribution and customer support are downstream costs, as they involve delivering and servicing the product or service. Therefore, the best choice is C) i and ii, as they are the only options that are considered upstream costs.

Upstream Costs for a Service Entity Include