LLL Corporation has recently performed a value-added analysis and ranking of activities. Presented below is an analysis of one sub-activity cost, sorted by value and cost:
This comparison shows that:
a. Activity 3 has the greatest value to the company
b. Eliminating the lowest-value activity would cause costs to decline 33.5%
c. The greatest savings would be in eliminating activities with a value of 4 or 5
d. There is a total of $2,081 of costs that could be eliminated for savings in this process