What Are the Two Basic Types of Non-Value-Added Activities

question 94

Multiple Choice

What are the two basic types of non-value-added activities?

• A)activities avoidable in the long run and activities unavoidable in the short run due to current technology or production methods
• B)activities avoidable in the short run and activities unavoidable in the long run due to current technology or production methods
• C)activities unavoidable in the short run due to current technology and activities avoidable due to production methods
• D)activities avoidable in the short run and activities unavoidable in the short run due to current technology or production methods

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Definitions:

Surplus

An excess of income or assets over expenditure or liabilities in a given period, typically referring to profit or a budgetary surplus.

Shortage

A market condition in which the demand for a product exceeds its supply at a particular price.

Market Price

The actual selling price of a good or service in the marketplace, determined by the forces of supply and demand.

Surplus

A situation in which the quantity of a good or service exceeds the quantity demanded at the current price.