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AICPA CPA-Business Exam - Topic 3 Question 120 Discussion
Topic #: 3
Which of the following activities is considered a primary activity?
Choice 'a' is correct. Primary activities are those that are involved with the direct manufacture of products, the delivery of products through distribution channels, and the support of the product that exists after the sale is made (e.g., handling the raw materials, the manufacturing process, taking orders for the product, advertising the product, and servicing the product after it is sold).
Choices 'b', 'c', and 'd' are incorrect, as these are all considered support activities. Support activities are those activities that are performed by the support staff of an organization (e.g., purchasing of materials and supplies, development of the technology used, management of employees, accounting, finance, strategic planning, etc.).
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