Explain Why a Bottleneck Limits the Output of a Process

question 71

Short Answer

Explain why a bottleneck limits the output of a process.

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Definitions:

Activity-based Costing

An accounting method where overhead and indirect costs are allocated to the corresponding products and services based on the required activities.

Floral Bouquets

Arrangements of flowers, typically designed and prepared by florists, that are sold for various occasions such as weddings, celebrations, or as gifts.

Plantwide Overhead Rate

A single rate used to allocate all of a plant's manufacturing overhead costs to its products or cost objects, regardless of the department in which the costs were incurred.

Activity-based Costing

A costing method that first assigns costs to activities and then to products based on each product’s use of activities.