Which of the Following Is Not True Regarding ABC

question 66

Multiple Choice

Which of the following is not true regarding ABC?

• A)ABC is too time-consuming and complicated for practical applications over a sustained period.
• B)ABC identifies the most and least profitable products and customers.
• C)ABC promotes the lean manufacturing philosophies of process simplification and waste elimination.
• D)All of the statements are true.

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Definitions:

Non-Value-Added

Activities or processes that do not add value to the product or service from the customer's perspective, leading to unnecessary costs.

Delivery Cycle Time

The total time taken from when a customer order is placed until the order is delivered, including all processing, manufacturing, and shipping times.

Residual Income

The amount of income generated after all expenses and costs have been deducted from total revenues, often used in performance evaluation.

Minimum Required Rate

The lowest acceptable return on investment or performance measure that a company or investor expects to achieve.