Examples of Value-Added Activities Include All of the Following Except

question 79

Multiple Choice

Examples of value-added activities include all of the following except:

• A) Product design.
• B) Material movement.
• C) Assembly activities.
• D) Establish an effective distribution network.

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Definitions:

Activity-Based Costing

A costing methodology that assigns overhead and indirect costs to specific activities, providing more accurate product or service costing.

Direct Labor-Hours

A measure of the time workers spend on a specific task or production, often used for costing purposes.

Traditional Costing Method

An accounting approach that assigns manufacturing overhead costs to products based on a volume metric like direct labor hours or machine hours.

Activity-Based Costing

A costing methodology that assigns costs to products based on the amount of resources used for specific activities, such as manufacturing or selling.