Non-Value-Added Activities That Are Necessary to Businesses,but Not Costs That

question 17

Multiple Choice

Non-value-added activities that are necessary to businesses,but not costs that customers are willing to pay for are known as

• A)business-value-added activities.
• B)long-term variable activities.
• C)short-term variable activities.
• D)superior business activities.

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Definitions:

Time Variance

The difference between the actual time taken to complete a task and the estimated time planned for it.

Direct Labor Hours

The total number of hours worked directly on a product or service by employees, usually used to allocate manufacturing costs.

Price Variances

Differences between actual and expected or standard costs that are attributed to changes in the price of goods or services.

Quantity Variances

The difference between actual and standard quantities used in production, affecting cost management and budgeting.