Wize University Managerial Accounting Textbook > Activity Based Costing
Value Added vs Non-Value Added Activities
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Value-Added Activities
These are the activities that increased the value of a product, in other words would increase how much a customer would pay for the product.
Examples of Value-Added Activities:
Engineering design
Machining
Assembly
Painting
Packaging
Non-Value-Added Activities
These are the activities that do not increase how much a customer would pay for a product.
Examples of Non-Value-Added Activities
Storage
Material handling
Inspecting
Packing
Practice: Value-Added vs Non-Value Added Activities
Which of the following activities are value-added?