Asked by Jacob Willard on May 20, 2024

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Activities that do not add value to a product or service that customers are willing to pay for are considered to be:

A) a constraint.
B) part of the overhead costs of a business.
C) normal business activities.
D) non-value-added activities.

Non-Value-Added Activities

Activities that consume resources but do not add value for which customers are willing to pay.

Overhead Costs

General business costs not directly related to creating a product or service, such as rent, utilities, and insurance.

  • Develop a foundation in the principles of managerial accounting.
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Lihini FernandoMay 26, 2024
Final Answer :
D
Explanation :
Non-value-added activities are those that do not add value to a product or service that customers are willing to pay for. These activities are typically considered wasteful and should be eliminated or minimized in order to improve efficiency and reduce costs. Examples of non-value-added activities include excess inventory, overproduction, and unnecessary transportation.