Factory Oak produces various wooden bookcases, tables,...

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MULTIPLE CHOICE QUESTIONS 1. Which of the following statements is (are) true about non-value-added activities? I.Non-value-added activities are often unnecessary and dispensable. II.Non-value-added activities may be necessary but are being performed in an inefficient and improvable manner. III.Non-value-added activities can be eliminated without deterioration of product quality, performance, or perceived value. Airstream builds recreational motor homes. All of the following activities add value to the finished product except : A. I only B. II only. C. III only. D. I and II. reduce the scope of selected activities. B. eliminate selected activities. C. combine selected activities. D. do "A" and "B" above. 2. During a recent accounting period, Marty's shipping department processed 26 orders. Each order typically takes four hours to complete; however, the average time increased to five hours because of various departmental inefficiencies. If shipping labor is paid $14 per hour, the company's non-value-added cost would be: 3. Stanley Corporation takes eight hours to complete the setup process for a certain electrical component, with the setup cost averaging $150 per hour. If the company's competitor can accomplish the same process in six hours, Stanley's non-value-added cost would be: A. $0. B. $150. C. $300. D. $900. E. $1,200. (150 x 8) – (150 x 6) 4. Factory Oak produces various wooden bookcases, tables, storage units, and chairs. Which of the following would be included in a listing of the company's non-value-added activities? A. Assembly of tables. B. Staining of storage units. C. Transfer of chairs from the assembly line to the staining facility. 5. Airstream builds recreational motor homes. All of the following activities add value to the finished product except : 6. In an attempt to cut non-value-added costs, companies may: A. reduce the scope of selected activities. B. eliminate selected activities. C. combine selected activities. D. do "A" and "B" above. 7. Customer profitability analysis is tied closely to: 8. Generally speaking, companies prefer doing business with customers who:

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