All organizations incur non value added costs Eliminating or reducing non value added costs is the responsibility of managers Using the Activity Based Management approach and focusing on the elimination of non value added activities is a great approach Review the following activities and choose the non value added activities You should try to find 4 non value added activities from the list Select only the 4 you believe are non value added activities A Microsoft Developing computer coding for a new spreadsheet package B Southwest Airlines The 90 minutes that an airplane sits idle on the ground between flights C Office Depot Moving cases of paper from one location to another in the same warehouse D Rolex Attaching a watch band to the watch's face E Marriott Upgrading the quality of bedding used at hotels in very competitive marketplaces F Verizon Errors made on a customer's bill G McDonalds Long lines at the drive thru window H Cosco Adding additional store hours during the holiday season The variable cost per unit produced is $1 per unit If 5,000 units are produced, the total variable cost for all the units is A $25,000 B $5,000 C $1,000 D $ Assume fixed costs total $500,000 for the year The fixed cost per unit is if 1,000 units are produced The fixed cost per unit is if 100,000 units are produced A $500 and $5 B $10 and $5 C $5 and $7 D $1 an $1,000

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Question: All organizations incur non value added costs. Eliminating or reducing non value added costs is the responsibility of managers. Using the Activity Based Management approach

All organizations incur non value added costs. Eliminating or reducing non value added costs is the responsibility of managers. Using the Activity Based Management approach and focusing on the elimination of non value added activities is a great approach. Review the following activities and choose the non value added activities. You should try to find 4 non value added activities from the list. Select only the 4 you believe are non value added activities.

	A.	Microsoft: Developing computer coding for a new spreadsheet package
	B.	Southwest Airlines: The 90 minutes that an airplane sits idle on the ground between flights
	C.	Office Depot: Moving cases of paper from one location to another in the same warehouse
	D.	Rolex: Attaching a watch band to the watch's face
	E.	Marriott: Upgrading the quality of bedding used at hotels in very competitive marketplaces
	F.	Verizon: Errors made on a customer's bill.
	G.	McDonalds: Long lines at the drive thru window.
	H.	Cosco: Adding additional store hours during the holiday season.

The variable cost per unit produced is $1 per unit. If 5,000 units are produced, the total variable cost for all the units is _________?

	A.	$25,000
	B.	$5,000
	C.	$1,000
	D.	$

Assume fixed costs total $500,000 for the year.

The fixed cost per unit is ________ if 1,000 units are produced.

The fixed cost per unit is ________ if 100,000 units are produced.

	A.	$500 and $5
	B.	$10 and $5
	C.	$5 and $7
	D.	$1 an $1,000

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