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In: Accounting

1. Identify at least one example of a manufacturing cost (direct labor, direct materials, or overhead...

1. Identify at least one example of a manufacturing cost (direct labor, direct materials, or overhead costs) associated with value added activities a non-profit homeless shelter.. 2.Which one of these: direct labor, direct materials, or overhead costs are most prominent (make up more of a non-profit homeless shelters costs)? It is fine to conjecture on this answer. You may not have access to the data.

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Expert Solution

A value added activity is an activity which adds usefulness to the product or service being given or delivered to consumer. These are the activities, which if eliminated, will reduce the actual usefulness of the product or services so delivered to the consumers.

For a non-profit homeless shelter, considering direct material is a manufacturing cost which is incurred in association with the value added activity, direct material can be material used for construction like cement, bricks, sand etc. These all are direct materials used in construction and without using these shelter home cannot be build, and therefore its of no value for the one who is desiorous of building a Non profit homeless shelter.

Firstly, all the direct expenses form important part of the project to be completed in a particular manner. However, in the given case considering the non profit shelter homes, direct material and labor seems to be the most prominent which are used in the construction of shelter homes. Without material, nothing can be build, and without labor, material is not of any use. So, these two forms the most crucial part here.

ekkarill92 answered 1 year ago
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