Factory Oak produces various wooden bookcases,tables,storage units,and chairs.Which of the following would be included in a listing of the company's non-value-added activities?
A)Assembly of tables.
B)Staining of storage units.
C)Transfer of chairs from the assembly line to the staining facility.
D)Storage of completed bookcases in inventory.
E)Both "C" and "D."

Question

Quizplus · Accepted Answer

Non-value-added activities are the activities that do not add value to the final product or service. Assembly of tables (choice A) and staining of storage units (choice B) are value-added activities as they add value to the products. However, the transfer of chairs from the assembly line to the staining facility (choice C) and storage of completed bookcases in inventory (choice D) are non-value-added activities as they do not add value to the products. Therefore, choice E, which includes both non-value-added activities, is the correct answer.

Factory Oak Produces Various Wooden Bookcases,tables,storage Units,and Chairs