CGMA Practice Questions - CGMA Chartered Global Management Accountant Exam

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In a process review, staff print sales orders, key them into a second system, and then scan the paper copy back into the archive. How should this activity be classified?

Value-added activity Necessary customer service enhancement Non-value-added rework caused by poor process design External failure cost

Correct Answer:

Non-value-added rework caused by poor process design

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