Factory Oak produces various wooden bookcases, tables, storage units, and chairs. Which of the following would be included in a listing of the company's non-value-added activities?
A) Assembly of tables.
B) Staining of storage units.
C) Transfer of chairs from the assembly line to the staining facility.
D) Storage of completed bookcases in inventory.
E) Transfer of chairs from the assembly line to the staining facility and storage of completed bookcases in inventory.

Question

Quizplus · Accepted Answer

Both the transfer of chairs from the assembly line to the staining facility and the storage of completed bookcases in inventory are examples of non-value-added activities as they do not directly contribute to the production process or add value to the final product. The assembly of tables and staining of storage units are necessary steps in the production process and are considered value-added activities.

Factory Oak Produces Various Wooden Bookcases, Tables, Storage Units, and Chairs