As a Commonly Used Problem Solving Technique, Which of the Following

question 34

Multiple Choice

As a commonly used problem solving technique, which of the following would be the BEST application of a Pareto chart?

• A) To determine when to make proactive adjustments to a process. II. To differentiate between major and minor problem areas. III. To gather data and to design experimental controlled changes. IV. To evaluate the results of other problem solving techniques upon the product or service.
• B) I and II only
• C) II and III only
• D) II and IV only
• E) I, II, III and IV

---

Definitions:

Total Manufacturing Costs

The sum of all costs directly involved in the production of goods, including raw materials, direct labor, and overhead.

Product Costs

Costs that are directly linked to the creation or acquisition of goods and services sold by a company.

Inventoriable Costs

Costs that are initially recorded as inventory on the balance sheet and expensed as cost of goods sold when the product is sold.

Work in Process Inventory

This inventory category includes items that are in the production process but are not yet completed.