Answer: decrease
Explanation: Marginal utility could be explained as the extra satisfaction derived from the consumption of one extra unit of an item. However, as consumption increases, the extra satisfaction (marginal utility) begins to decline. At this point, the demand for such product or item will tend to fall or drop due to the decline in satisfaction. When this happens, reduces the price of such item becomes paramount in other to fight the decline in demand of the product and induce consumers to buy more.
It is true that operating activities are the primary sources of revenue and expenses.
<h3>What is operating activities?</h3>
Operating activities are the primary source of revenues and expenses of a business which ultimately determine whether a company make profit or incurs loss. The amounts a business charges its customers when it provides goods or service is referred to operating activities.
Operating activities involve those activities a business engages for the purpose of making profit.
Operating activities includes:
- Investing activities
- Financing activities
Hence, operating activities are truly the primary sources of revenue and expenses.
Learn more about operating activities here : brainly.com/question/25716101
Purchases Debit $80,000
Accounts Payable Credit $80,000
Work in process Roasting Department Debit $42,000
Purchases Credit $42,000
Production Debit $22,500
Purchases Credit $22,500
<h3>What is Inventory?</h3>
Inventory is the current asset of a company which it sells to customers and gain profits, the inventory is also known as Stock. The raw material is converted into finished goods by manufacturing companies.
The purchases are debited with payable's account being credited and then the purchases/ inventory is issued for the production of goods, and is therefore charged as the work in process.
Learn more about Inventory at brainly.com/question/27256758
#SPJ1
Answer:
The correct option is d. purchasing
Explanation:
Value chain Model : The value chain model is that model which is used to add the values to the organization.
It comprises of two activities:
1. Primary activities : The primary activities are those activities which includes day to day activities or that activities through which the product can delivered to the final consumer.
It includes inbound logistics, outbound logistics, operations, marketing & sales, and services.
2. Support activities : The activities which support primary activities is called support activities. It includes firm infrastructure, human resource management, technology management, and procurement.
By giving above explanation, the purchasing is not a primary activity of the value chain model
Hence, the correct option is d. purchasing
