Value-added activities include:
A)Setting up machinery.
B)Storing direct materials.
C)Employee idle time.
D)Product design.

Question

Quizplus · Accepted Answer

Value-added activities are those activities that enhance the value of a product or service in the eyes of the customer. These activities include product design, development, and marketing which all contribute to the creation of a product that the customer is willing to pay for. Setting up machinery and storing direct materials are necessary activities but do not directly add value to the product. Employee idle time is a non-value added activity as it does not contribute to the production of the final product.

Value-Added Activities Include