Question

Which of the following could be an example of a value-added activity? Inspection of products produced to ensure that the product meets customer specifications Halting the conversion of work in process while awaiting further purchase of raw materials Extensive usage of time and resources to determine the quantity of the units to be produced Filing of documents as mandated by the reporting requirements of the Securities and Exchange Commission

Answer 1

Answer:

The correct answer is Inspection of products produced to ensure that the products meets customer specifications.

Explanation:

To be considered as such, a value-added activity must meet all three of the following criteria:

a) The customer is willing to pay for this activity to be done

b) The action must be done right the very first time

c) The activity transforms somehow the product or service

The correct answer meets the three criteria, since the user is willing to pay to make sure that the product meets his standards, it is done right the first time and transforms the product, since it adds a type of quality control and certification.