In an Organization That Makes Furniture, Which of the Following

question 105

Multiple Choice

In an organization that makes furniture, which of the following is a high value-added activity?

• A)Using direct materials in production.
• B)Inspecting production.
• C)Storing finished goods inventory.
• D)Moving work-in-process inventory between work stations.
• E)Reworking the product to repair defects.

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Definitions:

Activities Reported

A summary or record of actions, events, or operations that have taken place within a specific period.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing insight into what the company owns and owes as well as the amount invested by shareholders.

Purpose

The justification for the existence, creation, or action of something.

Return on Assets

Return on assets (ROA) is a financial ratio that indicates how profitable a company is relative to its total assets, calculating how effectively a company uses its assets to generate profit.