What are the three classes of activities defined by activity-based management. What is customer response to each of these activities? What is management's reaction to each of these activities?
Value-added activities--increase the worth of a product or service to a customer and are activities for which the customer is willing to pay. Management is willing to keep performing these activities.
Non-value added activities--increase the time spent on a product or service but does not increase its worth. Such activities are unnecessary from the customer's point of view; therefore management will strive to reduce or eliminate such activities.
Business value-added activities--are essential to business operations; however, the customer is not willing to pay for them. Management must decide which of these activities are truly essential and reduce those which are not in order to achieve a higher profit margin.
You might also like to view...
Transactions happening at odd times or places; being performed by people who would not normally participate; or including odd procedures are typically associated with which type of fraud symptom?
a. Accounting anomaly b. Internal control weakness c. Analytical anomaly d. Unusual behavior
The ________ says that agents' contracts to sell property covered by the Statute of Frauds must be in writing to be enforceable
A) merger clause B) common law of contracts C) doctrine of equity D) equal dignity rule
Factory overhead is charged to expense as it is incurred because it is a period cost.
Answer the following statement true (T) or false (F)
A buyer and seller have contracted for goods that are to be delivered C.O.D. Which is true?
A) The seller is unable to inspect the goods prior to paying for them, but remains able to reject them if inspection after payment uncovers nonconformities. B) The C.O.D. clause is unconscionable unless there were past payment problems. C) The seller is unable to reject the goods or to inspect the goods prior to paying for them. D) The payment of the C.O.D. amount is an irrevocable acceptance of the goods.