Question

Factory Oak produces various wooden bookcases, tables, storage units, and chairs. Which of the following would be included in a listing of the company's non-value-added activities?

A. Assembly of tables.
B. Staining of storage units.
C. Transfer of chairs from the assembly line to the staining facility.
D. Storage of completed bookcases in inventory.
E. Both "C" and "D."

Answer 1

The company's non-value-added activities include the transfer of chairs from the assembly line to the staining facility and the storage of completed bookcases in inventory.

Step-by-step explanation:

The listing of Factory Oak's non-value-added activities includes both the transfer of chairs from the assembly line to the staining facility (Option C) and the storage of completed bookcases in inventory (Option D).

Non-value-added activities refer to activities that do not directly contribute to the creation of value for the customer. Assembly of tables (Option A) adds value to the product, while staining of storage units (Option B) adds aesthetic appeal and thus adds value to the product. However, the transfer of chairs from the assembly line to the staining facility and the storage of completed bookcases in inventory do not directly contribute to the value of the product for the customer.

Therefore, the correct answer is Option E: Both "C" and "D."