Examlex
Consider the nine activities that follow.
1. Microsoft: Developing computer coding for a new spreadsheet package
2. General Mills: Painting the office of a maintenance supervisor at a plant that produces cereal
3. Mayo Clinic: Examining a new patient
4. American Airlines: The 90 minutes that a Boeing 757 sits idle on the ground between flights
5. Office Depot: Moving cases of paper from one location to another in the same warehouse
6. Rolex: Attaching a watch band to the watch's face
7. United States Postal Service: Reprocessing mail that had been sorted incorrectly on a malfunctioning sorting machine.
8. Fidelity Investments: Correcting errors made by company personnel in customer accounts
9. Marriott: Upgrading the quality of bedding used at hotels in very competitive marketplaces
10. Dell Computer: Re-working defective units found during quality control inspection
Required:
Categorize each of the activities as either value-added or non-value-added for the companies noted.
Opportunity Cost
The cost of forgone alternatives, or the benefits that could have been received by choosing the next best alternative.
Soybeans
A type of legume native to East Asia, widely grown for its edible bean which has numerous uses, including oil and feedstock.
Alfalfa
Alfalfa is a perennial flowering plant widely cultivated as fodder for cattle due to its high nutrient content.
Comparative Advantage
An economic principle that suggests a country, individual, or company is most efficient at producing a certain good or service compared to others, enabling trade benefits.
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