Question

how would you manage the cost associated with a value-creation activity?

Answer 1

Value creation is a part and parcel of every business organization.It is the primary ain of any business. In order to determine the costs associated with the operating the business, one must determine the optimal number of employees needed to for the current activity, all the costs associated with these employees, for instance their salaries, benefits given by the firm and training costs etc. Next in the line is the cost of the raw materials used in the production. Thus, the cost of ordering and receiving materials used in the production of the final product. Costs also transportation cost of the raw materials and finished products.

Thus, all the costs associated with value creation needs to be managed carefully.