Activity-based management; non-value-added activity; cost drivers; performance measures: manufacturer Favio Ltd manufactures high-impact plastic bike helmets. The A-1 helmet is produced in two processes: plastic extruding and assembly. The company has adopted an activity-based costing system. The following activities have been defined: Design A-1 helmet. Store materials. Move raw materials to production. Set up extruding machine. Operate extruding machine. Move product to assembly area. Assemble helmet. Label helmet. i Inspect and test helmet. Package helmet. Move finished helmet to shipping. " Advertise A-1 helmet. Required: 1 Identify the non-value-added activities at Favio Ltd. 2 Select three non-value-added activities and identify two possible root cause cost drivers for each one. 3 Use a process (supplier or customer) perspective to suggest a possible performance measure for the activity 'Inspect and test helmet