Under what conditions would the activity capacity used be zero?
A)If the activity is value-added.
B)If the activity is non-value-added.
C)If the activity is discretionary.
D)If the activity is committed value.

Question

Quizplus · Accepted Answer

Activity capacity used would be zero if the activity is non-value-added. Non-value-added activities do not contribute to the production of goods or services and are considered wasteful. Therefore, their capacity usage is typically zero. Value-added and committed value activities are necessary for production and have some level of capacity usage, while discretionary activities are optional and may or may not use capacity depending on their level of importance.

Under What Conditions Would the Activity Capacity Used Be Zero