In a complex production setting, often only a small fraction of total activity actually adds value to the final output. Other activities, called non-value-added activities, generally are a result of complexity of production settings and are not specific to the production of any particular good or service. Emamples of non-value-added activities in a factory are retrieving, handling, and moving materials; expediting; holding inventories; and reworking defective units. Reporting the costs of non-value-added activities is a first step toward their reduction or elimination