A(n)________ is the cost of an activity that cannot be eliminated without affecting a product's value to the customer.
A)inventoriable cost
B)unallocated cost
C)value-added cost
D)non-value-added cost

Question

Quizplus · Accepted Answer

Value-added costs are costs that are necessary for the production of a product and add value to it in the eyes of the customer. These costs cannot be eliminated without affecting the quality or the value of the product to the customer, making them an essential part of the production process. Non-value-added costs, on the other hand, are costs that do not add value to the product and can be eliminated without affecting its quality or value to the customer. Inventoriable costs and unallocated costs are not relevant to this definition.

A(n)________ Is the Cost of an Activity That Cannot Be