COST ACCOUNTING
INTRODUCTION TO COST ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following would not be an example of a value-added activity?
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timely delivery of products
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offering the customer a variety of products
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storage of finished products
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excellent customer service
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Explanation:
Detailed explanation-1: -Inspection is a non-value-added activity.
Detailed explanation-2: -Value-Added Activities are those that transform raw materials (plastic, lithium, copper) into the finished product (a smartphone) for which the customer is willing to pay. Some examples include molding, cutting, drilling or assembling parts.
Detailed explanation-3: -non-value-added (NVA) activity. an activity that increases the time spent on a product or service but that does not increase its worth or value to the customer.
Detailed explanation-4: -Examples of low value-added activities include setting up machines, moving product parts, waiting, reworking, inspecting and storing.
There is 1 question to complete.