(Activity analysis) The following activities take place in Usher’s Department Store. Upon receipt, Usher’s discounts all products 25 percent from the manufacturer’s suggested retail price. Only after the goods have been in stock for 90 days will additional discounts be given.
1. Attending trade shows to view new products
2. Reviewing supplier catalogs
3. Ordering merchandise
4. Waiting for shipments to be received
5. Inspecting goods for damage
6. Matching receiving reports and purchase orders
7. Placing discounted price tags on merchandise
8. Moving goods to retail area
9. Stocking shelves
10. Training salespersons in store merchandise
11. Checking out customers
12. Handing customer receipts
13. Wrapping gift items
14. Helping customers with return or exchanges
a. Indicate which activities are value added (VA), business value added (BVA), and non value added (NVA).
b. How might some of the business value added activities be reduced or eliminated?