________ is a cost that,if eliminated,would reduce the actual or perceived value or utility (usefulness)customers experience from using the product or service.
A) Non-value-added cost
B) Discretionary cost
C) Value-added cost
D) Committed cost

Question

Quizplus · Accepted Answer

A value-added cost is a cost that adds value to the final product or service. Eliminating such cost would reduce the actual or perceived value or utility (usefulness) customers experience from using the product or service. Non-value-added costs, on the other hand, do not add any value to the product or service and their elimination would not affect the customer's perception of value. Discretionary costs are optional and can be modified or reduced without affecting the product's quality or functionality. Committed costs are fixed costs that cannot be easily changed in the short term.

________ Is a Cost That,if Eliminated,would Reduce the Actual or Perceived