Black Company's Cost Management and Product Costing Procedures Follow Activity-Based

Multiple Choice

Black Company's cost management and product costing procedures follow activity-based costing (ABC) principles.Activities have been identified and classified as being either value-added or nonvalue-added for each product.Which of the following activities,used in Black's production process,is nonvalue-added? (CPA adapted)

A) Drill press activity.
B) Heat treatment activity.
C) Design engineering activity.
D) Raw materials storage activity.