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

---

Definitions:

FIFO

FIFO, which stands for "first in, first out," is an inventory valuation method where the first items placed in inventory are the first ones sold. This approach aims to mirror the actual flow of goods.

Ending Inventory Cost

The total value of all the goods a company has in stock at the end of a financial period, calculated using one of several accounting methods.

Physical Inventory

A process of counting the actual inventory on hand at a particular point in time.

Units Available

The total quantity of goods a company has ready for sale or production usage at any given time.