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A direct labour
B direct material
C researsh and development
D after sale services
C research and Development Cost
The right answer is C.
The upstream cost is the before production costs like research and development, designing, testing, etc.
C research and Development Cost
R&D is considered as up stream Cost as it is a pre-production cost,option a and b can also be considered but in above options given C can be prioritized.
In my opinion a,b & c are the correct answers as these all are required prior to product or service launch for any business firms.
A value chain is a set of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market. The concept comes from business management and was first described and popularized by Michael Porter in his best-seller, Competitive Advantage: Creating and Sustaining Superior Performance.[1]
The idea of the value chain is based on the process view of organizations, the idea of seeing a manufacturing (or service) organization as a system, made up of subsystems each with inputs, transformation processes and outputs. Inputs, transformation processes, and outputs involve the acquisition and consumption of resources - money, labour, materials, equipment, buildings, land, administration and management. How value chain activities are carried out determines costs and affects profits.
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