Work Should Be Released into the System When

question 98

Multiple Choice

Work should be released into the system when:

• A) a customer order is received.
• B) the first step in the process is idle.
• C) a customer order is completed.
• D) the bottlenecks need work.

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Definitions:

Estimated Activity Costs

Projected costs associated with specific activities or operations, often used in budgeting and planning processes.

Estimated Activity Volume

The projected amount of activity or production, measured in units, hours, or any other quantifiable terms, expected for a certain period.

Activity Cost Pool

A “bucket” in which costs are accumulated that relate to a single activity measure in an activity-based costing system.