Explain briefly why each activity has value added or non-value added.  Activity Classification a. Inventory control - Non-value-added b. Purchasing - Non-value-added c. Receiving - Non-value-added d. Employee training - Non-value-added e. Machine setups - Non-value-added f. Brewing - Value-added g. Packing and shipping - Value-added

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints
Section: Chapter Questions
Problem 17E
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Explain briefly why each activity has value added or non-value added. 

Activity Classification
a. Inventory control - Non-value-added
b. Purchasing - Non-value-added
c. Receiving - Non-value-added
d. Employee training - Non-value-added
e. Machine setups - Non-value-added
f. Brewing - Value-added
g. Packing and shipping - Value-added

Thank you for answering:)

Hops, Inc. manufactures several types of microbrew beers. Hops has identified the following
activities:
a. Inventory control
b. Purchasing
c. Receiving
d. Employee training
e. Machine setups
f. Brewing
g. Packing and shipping
View documents with this question (3)
Instructions
Classify each activity as value-added or non-value-added.
Ans: N/A, LO: 6. Bloom: C. Difficulty: Esy, Min: 5. AACSB: Refilective. AICPA BB: IndustrylSector Perspective, AICPA FN: Mlessurement, AICPA PC:
Problem Solving. IMA: Cos: Mgmt
Solution 170 (5 min.)
Activity
a. Inventory control
b. Purchasing
c. Receiving
d. Employee training
Machine setups
Brewing
g. Packing and shipping
Classification
Non-value-added
Non-value-added
Non-value-added
Non-value-added
e.
Non-value-added
f.
Value-added
Value-added
>
Transcribed Image Text:Hops, Inc. manufactures several types of microbrew beers. Hops has identified the following activities: a. Inventory control b. Purchasing c. Receiving d. Employee training e. Machine setups f. Brewing g. Packing and shipping View documents with this question (3) Instructions Classify each activity as value-added or non-value-added. Ans: N/A, LO: 6. Bloom: C. Difficulty: Esy, Min: 5. AACSB: Refilective. AICPA BB: IndustrylSector Perspective, AICPA FN: Mlessurement, AICPA PC: Problem Solving. IMA: Cos: Mgmt Solution 170 (5 min.) Activity a. Inventory control b. Purchasing c. Receiving d. Employee training Machine setups Brewing g. Packing and shipping Classification Non-value-added Non-value-added Non-value-added Non-value-added e. Non-value-added f. Value-added Value-added >
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