From the following list of costs for a kitchen manufacturer, determine the amount of value-added cost.

Question

Quizplus · Accepted Answer

Value-added cost refers to the cost of materials and labor that directly contribute to creating a product or service. From the list of costs provided, only materials and direct labor can be considered as value-added costs. The cost of materials is $26,000 and the cost of direct labor is $28,000, adding up to a total of $54,000 (option B).

From the Following List of Costs for a Kitchen Manufacturer