When Analysts at Farbex Spot-Check the Weight of Samples at Several

question 198

Multiple Choice

When analysts at Farbex spot-check the weight of samples at several points in the production process, they are engaging in

• A) value-added analysis.
• B) quality/cost studies.
• C) benchmarking.
• D) statistical process control.
• E) getting closer to the customer.

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Definitions:

Activity Base

A measure used in costing that is a significant and quantifiable activity or event, determining the cost incurred by an activity.

Level Of Activity

A measure of the volume of production or work that a business operates at, which can affect costs and efficiency.

Variable Costs

Expenses that vary directly with the amount of production or the degree of business operations.

Fixed Costs

Expenses that do not change with the level of production or sales over a certain period, such as rent or salaries.