Which of the Following Would Typically Be Viewed as Non-Value-Added

question 52

Multiple Choice

Which of the following would typically be viewed as non-value-added activities?

• A) yes yes yes no
• B) no no no yes
• C) no yes no yes
• D) yes yes no yes

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Definitions:

Factory Rent

The cost incurred by a business for leasing a manufacturing facility or space where production activities are carried out.

Factory Overhead

All the supplementary costs tied to manufacturing, aside from the expenses of direct materials and direct labor.

Amortization

The periodic transfer of the cost of an intangible asset to expense.

Direct Labor Used

The total hours worked by employees directly involved in the production process, impacting manufacturing costs.