Q355
Kind of cost which on elimination, would not reduce perceived usefulness that customers can obtain by using market offering is known as
A.
designed-in costs
B.
locked-in costs
C.
value added cost
D.
non-value added cost
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Kind of cost which on elimination, would not reduce perceived usefulness that customers can obtain by using market offering is known as non-value added cost. A non-value added cost is a production expense that does not increase the amount customers are willing to pay for the finished product.