The Pareto Principle Is Important to Consider When an Organization

question 26

Multiple Choice

The Pareto principle is important to consider when an organization is

• A)assessing whether to employ activity-based costing versus attribute-based costing.
• B)evaluating the number of activities that are value-added versus those that are non-value-added.
• C)deciding whether to offer a product in one color versus in ten colors.
• D)determining whether simultaneous engineering activities will be impacted by the "Rule of One."

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Definitions:

Quantitative Model

A representation of a real situation in numerical terms, often used to forecast future behavior, outcomes, or trends based on historical data.

Qualitative Model

A framework for analysis that uses non-numeric data to understand patterns, concepts, opinions, or experiences.

Demand Forecast

The estimation of the quantity of a product or service that consumers will purchase in the foreseeable future.

Regression Analysis

A method in statistics employed to explore how a dependent variable interacts with one or several independent variables.