Elimination of low-value-added activities in a firm should:
A)Be discouraged because of potential harmful effects.
B)Not affect customer value.
C)Not have priority because low-value-added activities have little effect on a firm's performance.
D)Have priority only when a firm is operating at a loss.
E)Happen naturally if the firm is well-managed.

Question

Quizplus · Accepted Answer

Elimination of low-value-added activities should always have priority because it reduces costs and allows a firm to focus on high-value-added activities that contribute to customer value. By eliminating such activities, the firm can become more efficient and effective, which ultimately benefits the customer.

Elimination of Low-Value-Added Activities in a Firm Should