Those activities that create the product the customer wants to buy are referred to as
A)Profitability activities.
B)Manufacturing burden.
C)Value-added activities.
D)Period costs.

Question

Quizplus · Accepted Answer

Value-added activities are those activities that add value to the final product and are necessary for creating the product that the customer wants to buy. These activities may include design, production, packaging, and shipping. Profitability activities are related to making a profit and may include cost cutting measures, reducing waste, and increasing revenue. Manufacturing burden refers to the indirect costs associated with manufacturing such as facility rent, utilities, and insurance. Period costs are the expenses not directly related to the production process, such as administrative expenses and marketing costs.

Those Activities That Create the Product the Customer Wants to Buy