Sleek, Inc.is a manufacturer that assigns cost using activity-based costing principles.Activities have been identiﬁed and classiﬁed as being either value-added or non-value-added as to each product.Which of the following activities used in Sleek's production process is non-value-added?
A)raw materials storage activity.
B)heat treatment activity.
C)drill press activity.
D)molding activity.
E)engineering design activity.

Question

Quizplus · Accepted Answer

Raw materials storage activity is considered non-value added as it does not add any value to the product itself. It is necessary for the production process but does not directly contribute to the end product's final value.