Which of the Following Statements Is NOT True About Process

question 31

Multiple Choice

Which of the following statements is NOT true about process flow analysis?

• A) Process flow analysis is dependent on systems thinking.
• B) Flowcharts are used to describe and improve the transformation process in a business.
• C) Process flows must always be forward, and cannot "loop back" to previous operations.
• D) Service blueprinting is another name for a flowchart.

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Definitions:

Overhead Allocation

The process of spreading overhead costs across different departments or products based on a predetermined criteria.

Activity-Based Costing

This is a pricing technique which tags and assigns the expenses of each activity within a company to its various products and services, based on their specific consumption levels.

Overhead Cost

All ongoing business expenses not directly attributed to creating a product or service, including rent, utilities, and salaries of non-production employees.

Activity Cost Pools

Collections of all the costs associated with a particular business activity, facilitating more precise allocation of overheads.