Examveda
Examveda

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

Answer: Option D

Solution(By Examveda Team)

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.

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