Fundamentals of Cost Accounting 3rd Edition by William N. Lanen, Shannon W. Anderson, Michael Maher

Exercise 12

What are examples of two nonvalue-added activities that could be found in merchandising organizations such as (a) a clothing retail store and (b) a record store?

Step 1 of 3

In addition to the value added activities, merchandise organization also provides non value added activities to its customers. Activities are comes under value added activities when it makes value addition to the organization. In contrast, non-value added activities are activities which provide direct benefits to the customers and not to the organization.