Value Non-Value.docx - Value Period Item Explain Explain...

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Item Value/ Non-Value Explain Period/ Product Explain A Value Without paying to distributor no product will be available to sale Product Cost It has direct relation to the production or sales process (Manufacturing supplies) B Non-Value It not part of the production process as it is for the entire store Period Cost Indirect cost in to the production or sale as it is mandatory for the whole store C Value It is part of the sale and cost calculation as it considers part of the main process Product Cost It has direct relation to the production or sales process as it is part of pricing step D Non-Value It is not necessary step but it is for the knowledge of the company itself Period Cost Indirect cost in to the production or sale, not related to the customer it is only related to the company itself and can be stopped without effecting the customers E Non-Value Not part of the producing or sales process and don’t effect it

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