According to the Text,the 80/20 Rule Suggests That

question 20

Multiple Choice

According to the text,the 80/20 rule suggests that

• A) 80 percent of profits come from 20 percent of business customers.
• B) 20 percent of profits come from 80 percent of business customers.
• C) 20 percent of profits come from 80 percent of customers.
• D) 80 percent of profits come from 20 percent of customers.
• E) 80 percent of profits come from 20 percent of sales.

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Definitions:

Equivalent Units

A concept used in cost accounting to convert partial units of production into a number of fully completed units.

Materials

Materials or ingredients utilized in the creation or fabrication of products.

First Processing Department

The initial department in a manufacturing process where raw materials begin their transformation into finished products.

First-In, First-Out

describes an inventory valuation method where goods first acquired are the first to be sold or used.