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A6. Do you believe "purchasing raw materials for production", "advertising the company’s products" and "moving finished...

A6. Do you believe "purchasing raw materials for production", "advertising the company’s products" and "moving finished goods around in the storeroom" are all value-adding activities? Justify your answer.

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Answer #1

Answer Value added activities are those activities which are worthy to create value in the good by converting it from raw material to finished goods and consumers are ready to pay .

Purchasing raw material is a value added activity because with it finished goods are produced.

Advertising the company product is a value added activity because consumers are willing to pay for it.

Moving finished goods around the store room is non value added activity because it is inventory for which consumers are not ready to pay.

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