The following activities take place in Usher’s Department Store. Upon receipt, U

Question

The following activities take place in Usher’s Department Store. Upon receipt, Ushers discounts all products 25 percent from the manufacturer’s suggested retail price. Only after the goods have been in stock for 90 days will additional discounts be given.

1. Attending trade shows to view new products

2. Reviewing supplier catalogs

3. Ordering merchandise

4. Waiting for shipments to be received

5. Inspecting goods for damage

6. Matching receiving reports and purchase orders

7. Placing discounted price tags on merchandise

8. Moving goods to retail area

9. Stocking shelves

10. Training salespersons in store merchandise

11. Checking out customers

12. Handing customer receipts

13. Wrapping gift items

14. Helping customers with return or exchanges

a. Indicate which activities are value-added (VA), business-value-added (BVA), and non-value-added (NVA).

b. How might some of the business-value-added activities be reduced or eliminated?

Explanation / Answer

The value Added by an activity in accounting sense is simply

(Value of the product of the activity) minus (Value of the product prior to the activity)

BVA activities are those activities which satisfy business requirements but add no value from the customer's view point(eg. Preparing financial reports, maintaining human resources records, and ordering business supplies)

NVA activities are activities which do not enhance the customer's image of the product or service and do not support the business process.

1.Business Value Added

2.Business Value Added

3.Business Value Added

4.Non Value Added

5.Business Value Added

6.Business Value Added

7.Business Value Added

8.Business Value Added

9.Business Value Added

10.Business Valule Added

11.Business Value Added

12.Business Value Added

13.Non Value Added

14.Business Value Added

b)The aim for productivity improvements is to reduce the BVA activities and to elimimate the NVA activities. When looking for ways to reduce BVA activities and to eliminate NVA activities be creative and innovative.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.