A value chain is the sequence of business processes in which:
A) Costs are determined with activity-based principles
B) Value is added to a product or service
C) All non-value-added activities are eliminated
D) Managers determine prices

Question

Quizplus · Accepted Answer

A value chain is the sequence of activities that add value to a product or service from the initial conception to the final delivery. Therefore, the best choice is B, as the value chain focuses on adding value to the product or service. The other choices are not accurate as the value chain does not necessarily involve activity-based principles, eliminating non-value-added activities, or determining prices.

A Value Chain Is the Sequence of Business Processes in Which