Business-value-added activities create costs that must be covered by the selling prices of a company's goods or services.

Question

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Business-value-added activities are essential processes or actions that contribute directly to the value or quality of a product or service, making it more desirable to customers. These activities incur costs, such as materials, labor, and overhead, which are then reflected in the selling prices to ensure the company covers its expenses and achieves a profit.

Business-Value-Added Activities Create Costs That Must Be Covered by the Selling