What Is an Example of a Value-Added Activity

question 77

Multiple Choice

What is an example of a value-added activity?

• A) moving
• B) inspecting
• C) scheduling
• D) supervising

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Definitions:

Economies of Scale

The cost advantage companies achieve due to an increase in production, leading to a reduction in the per-unit cost.

Diseconomies of Scale

A condition in which an increase in production leads to higher long-term average costs, contrary to economies of scale.

Licensing

The process through which a company grants permission to another entity to use its intellectual property, technology, or product specifications under agreed terms.

Government Permission

The requirement of obtaining approval or authorization from governmental bodies before engaging in certain activities, businesses, or projects.