Question

Which of the following would not be included as a value stream cost?

1) Raw materials
2) Labor costs
3) Overhead expenses
4) Sales revenue

Answer 1

Value stream costs typically include raw materials, labor costs, and overhead expenses, but not sales revenue.

Step-by-step explanation:

The value stream cost is the cost associated with producing and delivering a product or service to a customer. It includes costs such as raw materials, labor costs, and overhead expenses, as these are all directly related to the production process. Sales revenue, on the other hand, is not considered a value stream cost because it represents the income generated from selling products or services, rather than the cost of producing them.