Continuous Improvement

question 14

Multiple Choice

Continuous improvement:

• A) Is a measure of profits.
• B) Is a measure of costs.
• C) Rejects the notion of "good enough."
• D) Is not applicable to most businesses.
• E) Is possible only in service businesses.

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Definitions:

Ordinary Maintenance

Routine and regular upkeep activities required to maintain or preserve assets in their original condition, preventing deterioration over time.

Asset Improvements

Asset improvements involve the enhancement or upgrade of an asset, increasing its value or extending its useful life, without necessarily changing its original purpose.

Ordinary Maintenance

Routine upkeep and repairs necessary to keep an asset operating under normal conditions.

Asset Improvements

Expenditures made to increase the service life or value of an asset without changing its original purpose.