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:

Income

Funds that an individual or business receives, usually in exchange for providing a good or service or through investing capital.

Price

The financial commitment expected, necessary, or made as payment for an article.

Miles

A unit of distance measuring 5280 feet or approximately 1.609 kilometers.

Inferior Good

A type of good whose demand decreases as the income of consumers increases, opposite to normal goods.