A Framework for Classifying Value-Adding and Nonvalue-Adding Activities According to the Level

question 104

Multiple Choice

A framework for classifying value-adding and nonvalue-adding activities according to the level at which their costs are incurred is called a

• A) bill of activities.
• B) full product cost.
• C) value chain.
• D) cost hierarchy.

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Definitions:

Total Quality Management

An organizational approach focusing on continuous improvement in all aspects of business, aimed at achieving long-term customer satisfaction.

Timeliness to Market

The strategy of bringing a product or service to the market at the right time to maximize its acceptance or competitive advantage.

Process Reengineering

The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical areas such as cost, quality, service, and speed.

Core Processes

Fundamental business processes that are critical to achieving an organization's objectives and competitive advantage.