Asked by Jacob Willard on May 20, 2024
Verified
Activities that do not add value to a product or service that customers are willing to pay for are considered to be:
A) a constraint.
B) part of the overhead costs of a business.
C) normal business activities.
D) non-value-added activities.
Non-Value-Added Activities
Activities that consume resources but do not add value for which customers are willing to pay.
Overhead Costs
General business costs not directly related to creating a product or service, such as rent, utilities, and insurance.
- Develop a foundation in the principles of managerial accounting.
Verified Answer
LF
Lihini FernandoMay 26, 2024
Final Answer :
D
Explanation :
Non-value-added activities are those that do not add value to a product or service that customers are willing to pay for. These activities are typically considered wasteful and should be eliminated or minimized in order to improve efficiency and reduce costs. Examples of non-value-added activities include excess inventory, overproduction, and unnecessary transportation.
Learning Objectives
- Develop a foundation in the principles of managerial accounting.
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