Non-value-added costs are the costs of activities that can be eliminated with no deterioration of product quality, performance, or perceived value.

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Non-value-added costs refer to activities that do not contribute to the end product or perceived value and can be eliminated without affecting the quality or performance of the product. This can include activities such as overproduction, excess inventory, unnecessary processing, waiting, defects, and over-processing. Eliminating these activities can lead to cost savings and increased efficiency without affecting the final product.

Non-Value-Added Costs Are the Costs of Activities That Can Be