Harvey Industries manufactures and sells fine wood furniture.The company uses the sawdust generated by the production of its furniture products to make particle board.The particle board is then used in the construction of inexpensive furniture that the firm sells in retail stores,such as Walmart.Which term best describes how the firm uses sawdust?

Question

Quizplus · Accepted Answer

The term "by-product synergy" describes the practice of using a by-product of one process as an input for another process, creating value from what would otherwise be waste. In this case, Harvey Industries is using sawdust (a by-product of furniture production) to make particle board, which is then used to create a lower-priced product line of furniture. This practice allows the company to create additional value from its resources and reduce waste.

Harvey Industries Manufactures and Sells Fine Wood Furniture