Xavier Products Company is in the process of adopting the just-in-time operating philosophy for its trophy-making operations. Indicate which of the following overhead costs is a nonvalue-adding cost (NVA).
A) Machine electricity
B) Machine repairs
C) Depreciation of the coffee machine
D) Machine setup labor

Question

Quizplus · Accepted Answer

Depreciation of the coffee machine is a nonvalue-adding cost because it does not directly contribute to the production process or add value to the product.

Xavier Products Company Is in the Process of Adopting the Just-In-Time