Which of the Following Statements About Processing Cycle Efficiency (PCE)

question 108

Multiple Choice

Which of the following statements about processing cycle efficiency (PCE) is not true?

• A) It is defined as the ratio of processing time to non-processing time.
• B) It is a measure of operating process efficiency.
• C) It is based on the relationship between actual processing time and total production time.
• D) It incorporates notions of "value-added" and "non-value-added," as discussed in the development of activity-based cost (ABC) systems.
• E) The optimum value of PCE is 1.0.

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