VALUE ADDED - COSTING CA FINAL

State whether each of the following independent activities is value-added or non value-added:

(A) Delivering Packages by a delivery service.
(B) Providing legal research for legal services.

(C) Too long or insufficient set up times

 

 

Replies (3)
Quick Summary
This discussion clarifies the distinction between value-added and non-value-added activities within the context of Cost and Management Accounting for CA Final students. It examines scenarios like package delivery, legal research, setup times, and software maintenance to help identify which activities contribute directly to customer satisfaction and which are merely operational necessities or inefficiencies.

1) VALUE ADDED
2) VALUE ADDED
3) NON VALUE ADDED

D) Maintenance by a software company of receivables management software for a banking company.
 

1. VALUE ADDED, Delivering Packages by a delivery service is a value added service but returning the same is a Non value added activity.
2. VALUE ADDED

3. NON VALUE ADDED
4. VALUE ADDED

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