Classify Each Step Below as a Value-Added Activity or a Non-Value-Added

question 73

Essay

Classify each step below as a value-added activity or a non-value-added activity.Use V for value-added activity and N for non-value-added activity.
_____ 1.Raw materials are transferred to a storage area pending use in production.
_____ 2.Raw materials are transferred to the production area for use in products.
_____ 3.Partially complete products are waiting to be worked on because equipment failed.
_____ 4.Raw materials are placed on pallets before they are used in production.
_____ 5.Finished products are transferred to the warehouse awaiting sale.
_____ 6.Finished products are checked for defects by Quality Control Department.
_____ 7.Partially complete products are transferred to the Finishing Department.
_____ 8.Completed products are transported to another building that has the Packaging Department.
_____ 9.Partially complete products are checked for defects by the supervisor.
_____ 10.Units of partially complete products are assembled by union workers.

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Definitions:

Banana Production

The cultivation, harvesting, and processing of bananas, typically for consumption as food or for use in various products.

Comparative Advantage

The ability of an individual or firm to produce a good or service at a lower opportunity cost than other producers.

Absolute Advantage

The capacity of a person, corporation, or nation to manufacture a product or provide a service at a lower unit cost than rival entities.

Motorcycles

No real economic term; in economics context, motorcycles might be discussed concerning market dynamics, production costs, and consumer behavior in the automotive industry.