E$5-31($LO $3)$ Anna Bellatorre Inc. is interested in using its activity$-$based costing system to improve its operating efficiency 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 non$-$value$-$added.

Instructions

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

a$.$ Designing new models

b$.$ Purchasing raw materials and parts

c$.$ Storing and managing inventory

d$.$ Receiving and inspecting raw materials and parts

e$.$ Interviewing and hiring new personnel

f$.$ Machine forming sheet steel into appliance parts

g$.$ Manually assembling parts into appliances

h$.$ Training all employees of the company

i$.$ Insuring all tangible fixed assets

j$.$ Supervising production

k $.$ Maintaining and repairing machinery and equipment

l$.$ Painting and packaging finished appliances