If a Facility Has Costs of $100,000 Per Year and 20,000

question 55

Multiple Choice

If a facility has costs of $100,000 per year and 20,000 square metres,and if 19,000 square metres are absorbed by the value streams,what happens to the unabsorbed cost of the remaining 1,000 metres?

• A)The cost is allocated to all the value streams based on proportionate square foot usage.
• B)The cost is assigned to all value streams equally.
• C)The cost is absorbed by the largest value stream.
• D)The cost is deducted from revenue as a separate item.

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Definitions:

Organizational Announcements

Official messages distributed to members within an organization, often related to policy changes, new hires, promotions, or other significant updates.

Negative

Referring to something harmful, undesirable, or expressing disapproval or pessimism.

Performance Problems

Issues related to an employee's work performance that do not meet the established standards or expectations.

Appraising Employee

The process of evaluating an employee's performance, often to inform decisions on promotions, pay raises, and development needs.