The Purpose of Options-Based Planning Is to Commit People and Resources

question 70

True/False

The purpose of options-based planning is to commit people and resources to a particular course of action.

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Definitions:

Batch Level Activities

Activities and costs incurred for a group of products rather than individual units or processes.

Facility Level Activities

Operations and tasks that support the entire organization and are not tied to a specific product or service.

Facility-level Costs

Refers to the expenses incurred by a facility or plant that are not directly tied to specific products or departments but are necessary for the overall operation.

Batch-level Costs

Expenses that are incurred every time a batch of goods is produced, relating to tasks like setup and inspection.