Consider the following manufacturing-related activities.
I. Conducting the final assembly of wooden furniture.
II. Moving completed production to the finished goods warehouse.
III. Painting newly manufactured automobiles.
IV. Setting up a machine related to a new production run.
V. Reworking defective goods to bring them up to quality standards.
The activities that would be classified as value-added activities are:
A) II, III, IV, and V only.
B) I, IV, and V only.
C) I, III, and V only.
D) I and III only.

Question

Quizplus · Accepted Answer

Value-added activities are those that increase the worth of a product or service to customers. Conducting the final assembly of wooden furniture (I) and painting newly manufactured automobiles (III) are activities that directly enhance the product's value.

Consider the Following Manufacturing-Related Activities