From the above schedule of activity costs,determine the non-value-added costs.
A) $30,000
B) $50,000
C) $64,000
D) $85,000

Question

Quizplus · Accepted Answer

Non-value-added costs refer to any activity cost that does not directly contribute to the production or delivery of a product or service that meets the needs of the customer. In the given schedule, the costs related to setup, inspection, and rework are considered non-value-added costs. These costs sum up to $64,000 (Setup cost of $8,000 + Inspection cost of $22,000 + Rework cost of $34,000). Therefore, the correct choice is C.

From the Above Schedule of Activity Costs,determine the Non-Value-Added Costs