_____ Actions and Resources Are Those That Create Value for the Customer

question 23

Multiple Choice

_____ actions and resources are those that create value for the customer.

• A)Extras
• B)Non-value-adding
• C)Necessary non-value-adding
• D)Value-adding
• E)None of these answers.

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Definitions:

Rent Expense

An expense incurred by a company for the use of a property or equipment.

Repair and Maintenance

Expenses incurred to keep an asset in working condition or to restore it to its desired condition, which do not extend the asset's useful life significantly.

Bank Loan Payable

A financial obligation representing money borrowed from a bank that a company is required to pay back with interest by a specified future date.

Prepaid Insurance

An asset account on the balance sheet representing insurance payments made in advance for coverage that will extend over a future period.