A Process Chart Activity That Changes, Creates, or Adds Something

question 98

Multiple Choice

A process chart activity that changes, creates, or adds something is a(n) :

• A) operation.
• B) transportation.
• C) inspection.
• D) delay.

---

Definitions:

Prime Cost

The combined direct costs of raw materials and labor that are directly attributable to the production of a product.

Direct Labor Cost

The wages paid to workers directly involved in production or service delivery, constituting a major component of a product's cost.

Variable Production

Production costs that vary in total directly and proportionately with changes in the production level.

Fixed Production

Production levels set without regard to the varying levels of demand or activity, often resulting in constant output rates.