Question

Which action is a value-added activity?

1) moving materials to production
2) storing finished goods
3) moving materials to finished goods
4) producing products

Answer 1

The value-added activity in this context is producing products, which involves transforming inputs into goods or services that the firm wants to sell.

Step-by-step explanation:

The value-added activity refers to the actions or processes that contribute directly to the creation of value for the customer. In this context, the action that is a value-added activity is producing products. This activity involves transforming inputs, such as labor, capital, and raw materials, into outputs, which are the goods or services that the firm wants to sell.