Value Stream Mapping Is Used to Identify All of the Value-Adding

question 77

True/False

Value stream mapping is used to identify all of the value-adding as well as non-value-adding processes that materials are subjected to within a plant.

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Definitions:

Operating Leases

Leases in which the lessee obtains the right to use an asset for a short period of time, without assuming the risks and rewards of ownership.

Initial Direct Costs

Expenses that are directly attributable to negotiating and arranging a lease, which are added to the carrying amount of the leased asset or deducted from the leasing income.

Residual Value

is the estimated amount that an entity would currently obtain from disposing of the asset, after deducting the estimated costs of disposal, at the end of its useful life.

Asset's Economic Life

The period over which an asset is expected to be economically useful to the owner.