The necessary cost of an activity that cannot be eliminated without affecting a product's value to the customer is a
A) period cost.
B) product cost.
C) prime cost.
D) value-added cost.

Name: The necessary cost of an activity that cannot be eliminated without affecting a product's value to the customer is a A) period cost. B) product cost. C) prime cost. D) value-added cost.
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Question

Quizplus · Accepted Answer

A value-added cost is necessary for the production process and directly contributes to the product's value to the customer.

The Necessary Cost of an Activity That Cannot Be Eliminated