Which of the following is a necessary condition for classification as a value-added activity?
A)The activity produces no change of state.
B)The change of state was not achievable by preceding activities.
C)Activity is the last activity to be performed.
D)Activity is not necessary as part of the production process.

Question

Quizplus · Accepted Answer

Value-added activities are activities that add value to the final product or service and cannot be eliminated without affecting the final output. One of the necessary conditions for an activity to be classified as value-added is that the change of state achieved by the activity was not achievable by preceding activities. This means that the activity contributes something unique and essential to the final product or service that cannot be achieved otherwise. Therefore, option B is the correct choice. The other options do not meet the necessary conditions for classification as value-added activities.

Which of the Following Is a Necessary Condition for Classification