Top Posters
Since Sunday
38
o
10
j
9
m
9
9
C
8
s
8
a
8
f
8
y
8
n
8
d
8
Home Q & A Board Other Fields Homework Help Business Management
New Topic  
Onxy Onxy
wrote...
Go to Answer
Posts: 1578
Rep: 0 0
6 years ago
What do managers do when activities and costs do not fall neatly into value-added or non-value added categories? What is the risk involved with this decision?
Textbook 
Managerial Accounting: Decision Making and Motivating Performance

Managerial Accounting: Decision Making and Motivating Performance


Edition: 1st
Authors:
Read 70 times
1 Reply
Replies
Answer verified by a subject expert
noitulovenoitulove
wrote...
#1
Top Poster
Posts: 852
Rep: 14 0
6 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
Managers make decisions and they use their judgment to classify costs. For example, supervision costs and production control both have value-added and non-value added components. Some managers prefer to classify costs as non-value-added to focus organizational attention on cost reduction.
This can be risky because the organization may cut some costs that are value-adding. As a result, the impact could be poor customer service or other value-added elements that once enhanced the organization.
1

Related Topics

Onxy Author
wrote...

6 years ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
patyfeitosa
wrote...

Yesterday
Helped a lot
Shassta22
wrote...

2 hours ago
Thanks for your help!!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  362 People Browsing
 187 Signed Up Today
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 770
  
 14071
  
 250
Your Opinion
What's your favorite coffee beverage?
Votes: 267
Previous poll results: Which of the following is the best resource to supplement your studies: