The Pareto Principle Is Important to Consider When an Organization

question 26

Multiple Choice

The Pareto principle is important to consider when an organization is

• A)assessing whether to employ activity-based costing versus attribute-based costing.
• B)evaluating the number of activities that are value-added versus those that are non-value-added.
• C)deciding whether to offer a product in one color versus in ten colors.
• D)determining whether simultaneous engineering activities will be impacted by the "Rule of One."

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Definitions:

Lower Control Limit

A statistic used in process control that represents the lowest acceptable boundary for process variation.

ISO 9001:2015

An international standard that specifies requirements for a quality management system (QMS).

Quality System

A structured framework for managing and improving all aspects of an organization's operations, ensuring consistency, efficiency, and satisfaction.

Customer Expectations

The set of assumptions, desires, and needs that a customer has regarding a product or service.