An Example of an Operation That Does Not Add Value

question 68

Multiple Choice

An example of an operation that does not add value is ____________________________.

• A) removing iron ore from the ground and shipping it to a steel mill
• B) filling the underground gasoline tanks at a service station
• C) making a wedding cake
• D) moving components to a warehouse for storage until the factory needs them
• E) moving luggage from a cab to the airport ticket counter

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Definitions:

Ending Inventory

The total value of goods available for sale at the end of an accounting period.