DEH Corporation Recently Conducted a Value-Added Analysis as Part of a Business

question 39

Multiple Choice

DEH Corporation recently conducted a value-added analysis as part of a business process management project. Results showed that each unit of product absorbed the following costs: assembly, $5.00; quality checking, $2.00; machine depreciation, $3.00. By eliminating any non-value added activity, DEH could reduce its unit cost from $10.00 to:

• A) $2.00
• B) $7.00
• C) $8.00
• D) some other amount

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