According to Little's Law, Which of the Following Can Be

question 14

Multiple Choice

According to Little's Law, which of the following can be used to estimate work-in-process inventory?

• A) Process time/Cycle time
• B) Throughput rate times Flow time
• C) Process velocity/Flow time
• D) Set up time/Throughput rate
• E) Value added time/Process velocity

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Definitions:

Activity Cost Pool

A categorization in cost accounting that aggregates costs incurred for a specific activity, aiding in more accurate product or service costing.

Product Development

The creation of new products or improvements to existing products to meet customer needs or market opportunities.

Activity Rate

The predetermined overhead rate used in activity-based costing to allocate overhead costs to cost objects based on their usage of activities.

Engineering Change

A modification to a product’s design, production process, or materials, usually made to improve functionality or to reduce costs.