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6 July, 20:07

The value chain comprises activities from research and development through the production process but does not include activities related to the distribution of products or services. True / False.

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  1. 6 July, 20:50
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    False

    Explanation:

    What increases the cost of a product or service is the value that has been added, it will be observed that a material at its raw state is cheaper than when it becomes finished goods, the difference in pricing is the value addition.

    Therefore, all the stages in a production process that add value to the goods from the production factory until it gets to the hands of the final consumer is called value chain.

    Distribution of products or services is part of the value chain because it alters the physical location of the goods and service to bring them close to the consumers. this type of value is place utility.
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