Chapter 19, Problem 1STQ

To determine

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.

Conclusion

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.