Those activities that consume resources but do not contribute to the value of the product are referred as
A)contribution activities.
B)non-value-added activities.
C)negative activities.
D)period costs.

Question

Quizplus · Accepted Answer

Non-value-added activities refer to those activities that consume resources but do not add any value to the product or service from the customer's perspective. They are also known as waste, unnecessary, or excess activities. Examples include overprocessing, waiting, defects, excess motion, inventory, and unnecessary movement of materials. Contribution activities contribute to the value of the product and are important for its success. Negative activities are not a commonly used term in this context. Period costs are costs that are not directly related to the production of goods or services, such as salaries, rent, and insurance.

Those Activities That Consume Resources but Do Not Contribute to the Value