Which of the Following Is Not an Example of a Business-Value-Added

question 36

Multiple Choice

Which of the following is not an example of a business-value-added activity?

• A) Adopting bar-code technology in the receiving department.
• B) Installation of a computerized human resource management module.
• C) Shortening the customers' billing cycle.
• D) Addition of an employee hotline for workplace complaints.
• E) Final painting and polishing of the product.

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Definitions:

Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other variables remain constant.

Cobb-Douglas Production Function

Production function of the form q = AK^aL^b, where q is the rate of output, K is the quantity of capital, and L is the quantity of labor, and where A, a, and b are constants.

Optimal Input Demands

The combination of inputs that minimizes the cost of producing a given output or maximizes output for a given cost.

Expenditures

Money spent on goods, services, or other expenses.