Question

Rich Novelty Company identified the following activities in its production and support operations. Classify each of these activities as either value-added or non–value-added. Activities (a) Machine setup. select between Non-value-added and Value-added (b) Design engineering. select between Non-value-added and Value-added (c) Storing inventory. select between Non-value-added and Value-added (d) Moving work in process. select between Non-value-added and Value-added (e) Inspecting and testing. select between Non-value-added and Value-added (f) Painting and packing. select between Non-value-added and Value-added

Answer 1

Answer:

Explanation:

Classification of activities as value-added or non-non-value-added of Rich Novelty Company:-

(a) Machine setup - non-value-added

(b) Design engineering - value-added

(c) storing inventory - non-value-added

(d) Moving work in process - non-value-added

(e) Inspecting and testing - non-value-added

(f) Painting and packing - value-added

Notes:-

1. Value--added activities of a company processes that increase the observed value of a product or service to customers.

2. Non-value-added activities of a company processes that decrease the observation value its product or service.