Which of the Following Is a Reason for Managerial Activity

question 8

Multiple Choice

Which of the following is a reason for managerial activity to be considered a value-added activity?

• A)It brings about a change of state.
• B)It fixes defective units.
• C)It inspects the quality of the units.
• D)It repeats a previous activity.

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Definitions:

Lessors

Parties that lease or rent out assets to lessees in exchange for periodic payments.

Leased Assets

Assets that are used by an entity under the terms of a lease agreement, which entails periodic payments for a specified time.

Operating Leases

Lease agreements for a shorter period than the asset's useful life, where the lessee does not assume the risks and rewards of ownership.

Capital Leases

Leases that are recognized as asset purchases for accounting purposes, where the lessee gains ownership rights of the leased asset at the end of the lease term.