Multistage ABC Is Used When

question 34

Multiple Choice

Multistage ABC is used when:

• A)There are many departments in the organization.
• B)Management wants a higher level of accuracy from the ABC calculations.
• C)There are complex relationships among the activities.
• D)To simplify the ABC calculations.
• E)There is no such thing as Multistage ABC.

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Definitions:

Maximum Cycle Time

The longest allowable period for completing a cycle or process from start to finish.

Efficiency

The ratio of useful output to total input, indicating the effectiveness with which resources are converted into outputs.

Network Diagram

A graphical representation of tasks, activities, or projects showing their sequential relationships and dependencies.

Takt Time

The rate at which a finished product needs to be completed in order to meet customer demand.