A Non-Value-Added Activity in a Service Enterprise Is

question 80

Multiple Choice

A non-value-added activity in a service enterprise is

• A) providing legal research.
• B) delivering packages.
• C) consulting.
• D) bookkeeping.

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Definitions:

Direct Labor

The payment for labor of employees directly involved in the generation of goods or the provision of services.

Equivalent Units

A concept used in cost accounting to convert the amount of work done on partially complete goods into a number of fully complete units.

Direct Materials

The raw materials that are directly traceable to the production of goods or services.

Direct Labor

Direct labor involves the wages of employees who are directly involved in the manufacturing or production process of a company's products or services.