Concept explainers
Identify the activity that is considered as a non-value-added activity.
Answer to Problem 1STQ
Option c and e. are the correct answers.
Explanation of Solution
A non-value-added activity:
A non-value-added activity is an activity does not add to the desirability of the product. For example,
- Misleading marketing
- Delays in production
- Supplying poor quality deliveries
Justification for the incorrect options:
Option a:
The mixing of flour, eggs, milk, and other ingredients into bread dough is a value-added activity. Therefore, it is an incorrect option.
Option b:
Baking the bread is a value added activity is a value-added activity. Therefore, it is an incorrect option.
Option d:
Delivering loaves to local stores is a value added activity. Therefore, it is an incorrect option.
Justification for correct options:
Option c:
Shipping the loaves to a warehouse to await distribution to local stores is a non-value-added activity. Therefore, it is a correct option.
Option e:
Rotating bread stock in the stores so that older loaves are sold first is a non-value-added activity. Therefore, it is a correct option.
Therefore, from the above explanation it is observed that options of c and e. are correct answers and the other options of a, b, and d are incorrect.
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