Answer (B) is correct. A value-added activity contributes to customer satisfaction or meets a need of the entity. A nonvalue-added activity does not make such a contribution. It can be eliminated, reduced, or redesigned without impairing the quantity, quality, or responsiveness of the product or service desired by customers or the entity. It is necessary to place a brake on a bicycle, whether the brake is reworked or new. The addition of the brake is required before the bicycle can be sold, which contributes to the customer’s satisfaction.