E$5$:$31($LO$\mathrm{.}3)$ Anna Bellatorre Inc. is interested in using its activity $-$based costing agstem to improve its operating efficien$$ and its profit margins by applying activity$-$based management techniques. As part of this undertaking, you have been asked to classify its plant activities as value$-$added or mon$-$value$-$sded.

Instructions

Using the list of activities below, classify each activity as either value$-$added or mon$-$value$-$added.

a$.$ Designing new models

b$.$ Purchasing raw materials and parts

e$.$ Storing and managing inventory

d$.$ Receiving and inspecting raw materials and parts

e$.$ Interviewing and hiring new personnel

C$.$ Machine forming sheet steel into appliance parts

$8.$ Manually assembling parts into applianoes

h$.$ Training all employees of the compaty

L$.$ Insuring all tangble fixed assets

J$.$ Supervising production

k$.$ Maintaining and repairing macklaery and equipment

Painting and packaging finished appliances