Which of the Following Is True of Reengineering

question 24

Multiple Choice

Which of the following is true of reengineering

• A) Reengineering increases the number of non-value-added activities in a process design.
• B) Reengineering decreases throughput by adding process bottlenecks.
• C) The goal of reengineering is to achieve quantum leaps in performance.
• D) The aim of reengineering is to focus on quality by adding multiple approval requirements for all transactions.

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Definitions:

Predetermined Overhead Rate

A rate calculated by dividing estimated overhead costs by an allocation base, used to allocate overhead costs to products or services.

Direct Labor-Hours

A measure of the total hours worked by employees directly involved in manufacturing a product or providing a service.

Manufacturing Overhead

Manufacturing overhead encompasses all production costs other than direct materials and direct labor, including expenses like factory equipment maintenance and utilities.

Direct Materials

Materials that are directly used in the production of a product and can be physically and easily traced to it.