A Nonvalue-Adding Activity Is Defined as A(n)

question 19

Multiple Choice

A nonvalue-adding activity is defined as a(n)

• A)administrative or support activity that adds overhead cost to the product and increases its market value.
• B)activity that adds cost to a product but does not increase its market value.
• C)activity that adds no cost to the product but increases its market value.
• D)wasteful but unavoidable production activity.

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Definitions:

Energy Consumed

The total amount of energy used by a process, system, or device, typically measured in units like kilowatt-hours or joules.

First-in, First-out Method

An inventory costing method where the first items purchased or produced are the first ones sold, assuming that older inventory is sold before newer stock.

Work in Process

Partially finished goods that are in the process of being manufactured but are not yet complete.

Direct Materials

Basic substances which can be directly linked to the production process of a product.