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.

Understand the concept and importance of internal control systems within organizations.

Identify the limitations and challenges associated with internal controls.

Explain the process and importance of bank reconciliations.

Comprehend the roles and responsibilities of employees in upholding internal controls.

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Definitions:

Express Warranty

A specific assurance provided by a merchant about a product or service's condition, quality, or functionality.

Frostbite

An injury caused by freezing of the skin and underlying tissues, most commonly affecting the extremities like fingers, toes, nose, and ears.

Warranty Of Merchantability

An implied guarantee that a product will meet reasonable standards of quality and performance.

Privity Of Contract

A doctrine in contract law which states that contracts are only binding on the parties signing the agreement and no third party can enforce the contract or be sued under it.