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Splitting Activities Refers To

question 48

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Splitting activities refers to:


Definitions:

Non-value-added Time

Time that does not contribute directly to the final value or quality of the product or service, often seen as a target for reduction in process improvement efforts.

Throughput Time

The elapsed time from when production is started until finished goods are shipped.

Residual Income

The net operating income that an investment center earns above the minimum required return on its operating assets.

Investment Center

A business segment whose manager has control over cost, revenue, and investments in operating assets.

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