Describe the Six Sigma Methodology

question 17

Essay

Describe the Six Sigma methodology.

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Definitions:

Activity Cost Pools

These are groupings of individual costs, based on the activities that drive costs in an organization, which are used in activity-based costing to allocate costs more accurately.

Machine-Hours

A measure of production time, quantifying the number of hours machines are operating in the manufacturing process.

Time-Driven

A concept or approach where activities, costs, or operations are measured and managed based on time, often used in activity-based costing.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific products or projects based on their consumption of resources.