In a Business Organization, the "80/20" Rule Relates To

question 15

Multiple Choice

In a business organization, the "80/20" rule relates to:

• A)work accomplished vs.people who perform it.
• B)the average input/output ratio of production processes.
• C)the value of a "good" problem solution vs.its cost.
• D)"key" products vs.product line "fillers."

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Definitions:

Residual Value

is the estimated value that an asset will retain at the end of its useful life.

Property, Plant & Equipment

Tangible long-lived assets owned by a business for the purpose of producing goods or services and not intended for sale during the normal course of business.

Land Improvements

Enhancements made to a parcel of land to increase its value or utility, such as landscaping, fencing, or installing utilities, which are capitalized and depreciated over time.

Lease Improvements

These are modifications made to rental premises in order to tailor the space to the needs of the tenant.