Which of the following is a cost that, if eliminated, would reduce the actual or perceived value or utility (usefulness) customers experience from using the product or service?
A) Non-value-added cost
B) Discretionary cost
C) Value-added cost
D) Committed cost

Question

Quizplus · Accepted Answer

Value-added costs provide value or usefulness to the customer, and eliminating them would reduce the perceived value of the product or service. Non-value-added costs and discretionary costs can be eliminated without affecting customer value, and committed costs are unavoidable expenses.

Which of the Following Is a Cost That, If Eliminated