A Team Has Been Assembled and Assigned a Project to Reduce

question 355

Multiple Choice

A team has been assembled and assigned a project to reduce recent, unanticipated production cost overruns. Which of the following tools should the project team select to determine the possible origins of the increased costs?

• A) Pareto chart
• B) Fishbone diagram
• C) Process diagram
• D) Run chart

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Definitions:

Inventory

Raw materials, work-in-process products, and finished goods that are considered to be the part of a business's assets that are ready or will be ready for sale.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor.

Income Tax Expense

The amount of income tax a company owes to federal, state, or local authorities, recognized as an expense in the period it is incurred.

Income Tax Payable

The amount of income tax a company owes to the government but has not yet paid.