The costs of which of the following business functions making up the value chain are NOT part of the downstream costs?
A) Manufacturing.
B) Distribution.
C) Marketing.
D) Customer Service.

Question

Quizplus · Accepted Answer

Downstream costs refer to the expenses incurred in activities related to delivering the final product to the customer. In the value chain, manufacturing is an upstream activity that transforms raw materials into finished products. Therefore, the costs of manufacturing are not part of the downstream costs. The downstream costs start from distribution, marketing, and customer service, which are activities that directly interact with customers and add value to the final product.

The Costs of Which of the Following Business Functions Making