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Management · Q343

Management Accounting

Graduate and Post Graduate · Management · question 343

Q343

If cost is eliminated, then reducing perceived usefulness that customers can obtain by using market offering will come under

A.
designed-in costs
B.
locked-in costs
C.
value added cost
Answer
D.
non-value added cost

Answer: Option C

Solution

Answer: Option C
Solution:
If cost is eliminated, then reducing perceived usefulness that customers can obtain by using market offering will come under value added cost. A value added cost is incurred when an asset is consumed in order to increase the value of goods or services to the consumer.