ID: A 6. Identify the following activities, for an automobile manufacturer, as e
ID: 347410 • Letter: I
Question
ID: A 6. Identify the following activities, for an automobile manufacturer, as either valuc-adding (V) or nonvalue-adding (NV). a. Moving products b. Storing parts c. Research and development d. Inventory control e. Production -f Customer service g. Cost accounting h. Engineering Listed below are the activities of Tammy's Toy Store. Identify the level at which each activity would be classified in the cost hierarchy used with ABC. Indicate each activity as unit level (UL), batch level (BL), 7. product level (PL), or facility level (FL). c. Assembling the product f Receiving raw materials g. Handling materials h. Cleaning up processing arca a. Designing a new product b. Using direct materials d. Maintaining a buildingExplanation / Answer
6) Following is the classification of the given activities into Value Adding and Non-Value Adding Activities:-
Value Adding Activities: Research and Development, Production, Customer Service, Engineering
Non-value adding activities: Moving products, Storing parts, Inventory Control, Cost Accounting
7) The given activities can be categorized into the cost categories as:-
Unit Level: Using direct materials, Receiving raw materials
Batch Level: Setting up equipment, Handling materials
Product Level: Designing a new product, Assembling the product
Facility Level: Cleaning up processing area, Maintaining a building