Which of the Following Is True of Non-Value-Added Activities

question 141

Multiple Choice

Which of the following is true of non-value-added activities?

• A)These activities are a source of waste in the value stream of a product.
• B)These activities are identified only after the finished goods reaches final customers.
• C)These activities result from adopting new technology for the production process.
• D)These activities ensure that no rework is required as the final product has zero-defects.

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Definitions:

Closing Entry

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent ones.

Capital Interest

This is the amount of interest owed on loans used to purchase assets intended for long-term use, reflecting the cost of financing capital investments.

Current Partners

Individuals or entities currently engaged in a business partnership, sharing responsibilities, profits, and losses of the venture.

Bonus

A bonus is an extra payment given to employees beyond their regular salary, often awarded for achieving specific performance targets or as part of the benefits package.