Non-Value-Adding Actions and Resources Are Those Actions in a Process

question 6

True/False

Non-value-adding actions and resources are those actions in a process that must be done to make the product but create no value for the customer.

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Definitions:

FUTA Tax Payable

A liability representing the federal unemployment tax that employers must pay on behalf of their employees to the IRS.

Payroll Tax Expense

The cost incurred by employers for taxes assessed on employee wages, including social security and medicare taxes.

Payroll Checking

A dedicated bank account used by businesses specifically for managing and issuing payroll to employees.

Contra-Asset

An account on the balance sheet that reduces the value of an associated asset, such as accumulated depreciation.