Which of the following is a value-adding cost?
A) Depreciation on personnel department equipment
B) Depreciation on factory equipment
C) Depreciation on office equipment
D) Depreciation on sales department equipment

Question

Quizplus · Accepted Answer

Depreciation on factory equipment is a value-adding cost because it is directly related to the production of goods and contributes to the creation of value for the customer. Depreciation on personnel, office, or sales department equipment is not directly related to the production process and does not add value to the product or service.

Which of the Following Is a Value-Adding Cost