Question

Snyder Painting is transitioning to an ABC system. So far, the company has traced its costs back to several different activities, including customer consultation, paint storage, onsite paint application, and site preparation and cleanup. If Snyder wants to reduce its non-value-added activities to the greatest extent possible, it should concentrate its efforts on reducing the amount of time and money it spends on

Answer 1

Answer:

Snyder Painting

If Snyder wants to reduce its non-value-added activities to the greatest extent possible, it should concentrate its efforts on reducing the amount of time and money it spends on

B. paint storage.

Explanation:

a) Identified Activities of Snyder Painting:

A. customer consultation.

B. paint storage.

C. site preparation and cleanup.

D. onsite paint application.

b) Non-value added activities are activities that are currently necessary and consume resources but do not add value to the company's product or service.  For example, equipment set-up, parts inspection, recording job time, job scheduling, product storage, and customer billing. These activities should be reduced to the barest minimum in order to maximize value.