All of the Following Are Low-Value-Added Activities Except

question 30

Multiple Choice

All of the following are low-value-added activities except:

• A)Processing.
• B)Reworking.
• C)Moving.
• D)Inspection.
• E)Warranty service.

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Definitions:

Marginal Cost

The rise in overall expenses associated with the production of an extra unit of a product or service.

Average Total Cost

The total cost of production divided by the number of units produced, giving a per unit cost of production.

Marginal Cost

The expense associated with creating an extra unit of a product or service.

Marginal Cost

The cost of producing one additional unit of a good or service, often varying with the level of production.