The three main areas in the value chain where significant differences in the costs of competing firms can occur include
A)age of plants and equipment, number of employees, and advertising costs.
B)operating-level activities, functional area activities, and line of business activities.
C)the nature and makeup of their own internal operations, the activities performed by suppliers, and the activities performed by wholesale distribution and retailing allies.
D)human resource activities (particularly labor costs), vertical integration activities, and strategic partnership activities.
E)variable cost activities, fixed cost activities, and administrative activities.

Question

Quizplus · Accepted Answer

The three main areas where significant cost differences can occur are within a firm's own operations, their suppliers' activities, and wholesale distribution and retailing activities. These areas are often interconnected and can influence each other's costs. Therefore, examining and optimizing these areas can lead to cost reduction and competitive advantage. Options A, B, D, and E do not adequately capture the main areas of cost differences in the value chain.

The Three Main Areas in the Value Chain Where Significant