Question
The e-Smart company repairs and services machine tools. A summary of your costs (by activity) for the year 2020 is presented in the following table.
The e-Smart company repairs and services machine tools. A summary of your costs (by activity) for the year 2020 is presented in the following table. Classify each cost as value-added costs and non-value-added costs.
| Materials and labor to service tools and machines | 1,800,000 |
| Reprocessing cost | 89,000 |
| Costs caused by dealys in work | 75,000 |
| Material handling costs | 67,000 |
| Material acquisition and inspection costs | 43,000 |
| Equipment preventive maintenance | 18,000 |
| Equipment corrective maintenance | 54,000 |
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Financial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
10th Edition
0324380674, 978-0324380675
