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:

Petty Cash Fund

A small amount of cash kept on hand for making immediate payments for miscellaneous small expenses.

Journal Entries

Records of financial transactions in the accounting system, where each transaction requires a debit and a credit.

Understated

Describes an item that is reported at a figure less than the actual amount.

Bank Reconciliation

Aligning an organization's bookkeeping figures for a cash account with the related details found on a bank statement.