Classifying Activities According to Level, Determining Value Added or Non-value Added Summer Company manufactures fl owerpots in several different sizes and has identified the following activities in...

Classifying Activities According to Level, Determining Value Added or Non-value Added

Summer Company manufactures fl owerpots in several different sizes and has identified the following activities in its manufacturing process.


Storing inventory


Creating molds


Pouring plaster


Firing pots in kiln


Sanding and finishing


Painting


Performing quality control


Ordering materials


Delivering orders to customers


Insuring the manufacturing facility


Reconfiguring machinery between batches


Required:


1. Classify each activity listed as facility, product, customer, batch, or unit level.


2. Identify a cost driver for each activity listed.


3. Indicate whether each activity is value added or nonvalue added.




May 26, 2022
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