________ Is a Cost That,if Eliminated,would Reduce the Actual or Perceived

question 43

Multiple Choice

________ is a cost that,if eliminated,would reduce the actual or perceived value or utility (usefulness) customers experience from using the product or service.

• A) Non-value-added cost
• B) Discretionary cost
• C) Value-added cost
• D) Committed cost

---

Definitions:

Operating Lease

A leasing agreement for short-term use of an asset, where the lessor retains risks and benefits of ownership.

Lessor

The owner of an asset that is leased to another party, referred to as the lessee.

Depreciated Historical Cost

The original cost of an asset minus accumulated depreciation, representing its value over time for accounting purposes.

Residual Value Guarantee

A promise that at the end of a lease, the asset being leased will have a certain value, often used in finance and leasing agreements.