Activities that do not add value to a product or service that customers are willing to pay for are considered to be:
A) normal business activities.
B) non-value-added activities.
C) part of the overhead costs of a business.
D) a constraint.

Question

Quizplus · Accepted Answer

Non-value-added activities are those activities that do not add value to a product or service from a customer's perspective. These activities should be identified, eliminated, or minimized to improve the efficiency and effectiveness of business processes. Normal business activities are those activities that are necessary for the production of goods or services. Overhead costs include all indirect expenses that are necessary to run a business, such as rent, utilities, and office equipment. Constraints refer to factors that limit or restrict the performance of business processes.

Activities That Do Not Add Value to a Product or Service