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Alexis Zamora

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4y ago

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What is the difference between value-added and non-value-added activities in a business process and how can identifying and eliminating non-value-added activities contribute to increasing overall efficiency and profitability?

Value-added activities are tasks that directly contribute to the creation of a product or service, while non-value-added activities do not add any value and are considered wasteful. By identifying and eliminating non-value-added activities, a business can streamline its processes, reduce costs, and improve efficiency. This can lead to increased productivity, faster delivery times, and ultimately higher profitability for the business.


How would you describe a non value added activity?

activities such as, receiving, forming, assembling, testing, painting,and packing and shipping, do all sonsidered value-added activities


What is the difference between value added and non-value added activities?

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How can you eliminate non added value activities?

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Value-added activities in a business process are those that directly contribute to the creation of a product or service that customers are willing to pay for. Examples include designing a product, assembling components, and providing customer service. Non-value-added activities, on the other hand, do not add value to the final product or service and should be minimized or eliminated. Examples include waiting time, unnecessary paperwork, and rework due to errors.


Value added and non value added activities in costing?

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