Value-added activities

Value-added activities are activities for which the customer is willing to pay because these activities add value to the final product or service, 192 Variable costing. The costing method that assigns only variable manufacturing costs to products. All fixed manufacturing costs (fixed MOH) are expensed as period costs. Also known as direct costing.

Definitions

According to Managerial Accounting by Braun, Tietz (5th edition),

Value-added activities. Activities for which the customer is willing to pay because these activities add value to the final product or service, 192 Variable costing. The costing method that assigns only variable manufacturing costs to products. All fixed manufacturing costs (fixed MOH) are expensed as period costs. Also known as direct costing.