Companies seek to minimize non-value added costs because they do not provide benefits to customers.

Question

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Non-value added costs refer to expenses that do not directly enhance the product or service that a company offers to its customers. These costs do not add any value to the end product and may even decrease the overall quality or usefulness of the offering. Therefore, companies seek to minimize these costs in order to improve customer satisfaction and increase profitability.

Companies Seek to Minimize Non-Value Added Costs Because They Do