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Name and Describe One Respected Technique Made Popular by Six

question 15

Essay

Name and describe one respected technique made popular by Six Sigma that allows managers to understand and measure quality improvements.


Definitions:

Step-down Method

An approach in accounting used to allocate indirect costs to relevant cost objects by sequentially distributing service departments' costs to production departments and other service departments.

Labor Hours

A measure of the amount of work output or effort, typically quantified in hours, provided by employees or workers.

Space Occupied

The area utilized by a business for its operations, including manufacturing, storage, and office space.

Step-down Method

A cost allocation method that sequentially assigns service department costs to other departments, including other service departments, based on specified criteria.

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