Nonvalue-added cost

Nonvalue-added cost is cost that, if eliminated, would not reduce the actual or perceived value or utility (usefulness) customers obtain from using the product or service.

Definitions

According to Cost Accounting by Horngren, Datar, Rajan (14th edition),

Nonvalue-added cost. A cost that, if eliminated, would not reduce the actual or perceived value or utility (usefulness) customers obtain from using the product or service.