In an effort to expand the usefulness of its activity-based costing system, Peter Catalano's Verde Vineyards decides to adopt activity-based management techniques (ABM). One of these ABM techniques is classifying its activities as either value-added or non-value-added.

Instructions

Using Verde's list of 15 activity cost pools in E5-25, classify each of the activities as either value-added or non-value-added.

1. Culling and replanting: Dead or overcrowded vines are culled, and new vines are planted or relocated. (Each variety has a separate vineyard.)

2. Tying: The posts and wires are reset, and vines are tied to the wires for the dormant season.

3. Trimming: At the end of the harvest, the vines are cut and trimmed back in preparation for the next season.

4. Spraying: The vines are sprayed with chemicals for protection against insects and fungi.

5. Harvesting: The grapes are hand-picked, placed in carts, and transported to the crushers.

6. Stemming and crushing: Cartfuls of bunches of grapes of each variety are separately loaded into machines, which remove stems and gently crush the grapes.

7. Pressing and filtering: The crushed grapes are transferred to presses, which mechanically remove the juices and filter out bulk and impurities.

8. Fermentation: The grape juice, by variety, is fermented in either stainless-steel tanks or oak barrels.

9. Aging: The wines are aged in either stainless-steel tanks or oak barrels for one to three years, depending on the variety.

10. Bottling and corking: Bottles are machine-filled and corked.

11. Labelling and boxing: Each bottle is labelled, as is each nine-bottle case, with the name of the vintner, vintage, and variety.

12. Storing: Packaged and boxed bottles are stored awaiting shipment.

13. Shipping: The wine is shipped to distributors and private retailers.

14. Heating and air-conditioning of plant and offices.

15. Maintenance of buildings and equipment: Printing, repairs, replacements, and general maintenance are performed in the off-season.