Question

From the following list of costs for a kitchen manufacturer, determine the amount of value-added cost.

Moving component parts from warehouse to assembly line	$	4000
Assembling the kitchen cabinets	$	45 000
Moving materials to the factory floor because of stock-out	$	30 000
Assembling the microwave units	$	5000
Reworking faulty handles on doors	$	2000
Testing the operation of the microwave unit	$	3000

Select one:

a. $37,000

b. $50,000

c. $75,000

d. $39,000

he following dates apply to a specific order processed by Melington Ltd:

Order placed by customer		20 March
Order received		1 April
Order placed on production		5 April
Production commenced		12 April
Order completed		15 April
Order delivered to customer		18 April

What is the customer response time?

Select one:

a. 29 days

b. 21 days

c. 26 days

d. 18 days

Answer 1