Those activities that create the product the customer wants to buy are referred to as
A)profitability activities.
B)manufacturing burden.
C)value-added activities.
D)period costs.

Question

Quizplus · Accepted Answer

Value-added activities are those activities that add value to a product or service and are essential for creating the product that the customer wants to buy. These activities contribute to the cost of the product or service and are important for the company's profitability. Examples of value-added activities include designing, engineering, assembling, packaging, and delivering the product to the customer. Profitability activities refer to the activities that contribute to the company's overall profitability, whereas manufacturing burden includes indirect costs associated with the production process. Period costs are expenses that are not directly related to the production process and are expensed in the period they are incurred.

Those Activities That Create the Product the Customer Wants to Buy