Answer:
(D) Traceable to a single cost object.
Explanation:
A direct cost -
It is refers to the amount which is directly linked to the production of the specific products and services , is referred to as the direct cost .
The direct cost is variable in nature .
The direct cost can be traced to the cost object , that can be department , product or service.
Hence, from the given information of the question,
The correct option is D.
Answer:
Strategic buyers are asset managers that are trying to time the purchase or sale of a business.
Financial buyers are institutions that provide capital and are not operators.
Explanation:
Strategic buyers are the buyers which aim to buy the company through acquisition, or M&A in order to gain more power in the industry, basically expanding their horizons, they are competitors, or the suppliers in the supply chain, or the customers of the product, they tend to buy such companies in order to decrease their share of cost.
Financial buyers are the one which basically provides finance to the company.
In simple terms these buyers just invest in the companies and have short term or long term goals from this investment, as long as these goals in the form of expected return are fulfilled they keep the investment, as soon when they discover its profitable to sell it further and have a capital gain they do so.
The value creation activities that deals with the design of products and production process is RESEARCH AND DEVELOPMENT.
Value chain activities are those activities that are put in place in order to create a product and get it to the final consumers. The series of activities involves include: research and development, production, marketing and sales and customer service.
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