Final answer:
Companies may cut non-value-added costs by reducing, eliminating, or combining selected activities to improve efficiency and reduce expenses. The answer to the question is E. do 'A,' 'B,' and 'C' above.
Step-by-step explanation:
In an attempt to cut non-value-added costs, companies may engage in several strategies to improve operational efficiency and reduce expenses. They can reduce the scope of selected activities, which means scaling down the extent of operations or services they provide. Alternatively, companies might eliminate selected activities entirely if they deem those activities as not contributing to the value or profitability of the business. Lastly, businesses can combine selected activities, such as merging departments or integrating processes, to streamline operations and reduce overlap and redundancy. The correct answer to the question is E. do "A," "B," and "C" above.
Companies always seek to manage costs smartly, whether they are expanding or reducing production, setting prices, hiring workers, or merging with other companies. In mergers and acquisitions, for example, companies often consolidate duplicated departments to eliminate redundancy and reduce costs, which may involve laying off workers. Similarly, companies may choose to implement changes that cut costs, like pollution reduction methods, where it is cheapest to do so.