=+7-16 KK Value-added, non-value-added costs OBJECTIVE 3 Coggs Ltd repairs and services machine tools. A summary of

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=+7-16 KK Value-added, non-value-added costs OBJECTIVE 3 Coggs Ltd repairs and services machine tools. A summary of its costs (by activity) for 2014 is as follows:

a Materials and labour for servicing machine tools $800 000 b Rework costs 75 000 c Expediting costs caused by work delays 60 000 d Materials-handling costs 50 000 e Materials-procurement and inspection costs 35 000 f Preventive maintenance of equipment 15 000 g Breakdown maintenance of equipment 55 000 Required 1 Classify each cost as value added, non-value added or in the grey area in between.

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Cost Accounting A Managerial Emphasis

ISBN: 9781442563377

2nd Edition

Authors: Monte Wynder, Madhav V. Rajan, Srikant M. Datar, Charles T. Horngren, William Maguire, Rebecca Tan

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