Activities That Do Not Add Value to a Product or Service

question 51

Multiple Choice

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.

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Definitions:

Interim Financial Report

A set of financial statements covering a period shorter than a full fiscal year, usually quarterly or semi-annually, to provide investors and other stakeholders with up-to-date information.

Inventory

The raw materials, work-in-process goods, and completely finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.

Interim Report

A financial statement reported by a company for a period less than one year, often quarterly, that provides updates on its operations and financial status.