Which of the following is an example of value-added time?
A) Processing time
B) Wait time during inspection
C) Wait time in inventory
D) Both B and C

Question

Quizplus · Accepted Answer

Value-added time refers to the time spent in activities that directly contribute to the creation of a product or service that the customer is willing to pay for. Processing time is an example of value-added time as it involves transforming raw materials into a finished product, which adds value to the product. Wait time during inspection and wait time in inventory are examples of non-value-added time, as they do not contribute to the creation or delivery of the product or service.

Which of the Following Is an Example of Value-Added Time