Which of the Following Activities Would Be Classified as Non-Value

question 156

Multiple Choice

Which of the following activities would be classified as non-value added in the manufacture of wooden bird houses?

• A)Moving materials
• B)Nailing
• C)Painting
• D)Sanding

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Definitions:

Raw Materials Inventory

The total cost of all the materials not yet processed and used in the manufacturing of products, kept in inventory.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and can be directly associated with the finished product.

Raw Materials Purchased

The total cost of raw materials bought by a company for the purpose of production in a specific period.

Cost Of Goods Manufactured

The total expense incurred to produce products during a specific period, including costs of raw materials, labor, and manufacturing overhead.