Reengineering How a Firm Performs a Business Process

question 108

Multiple Choice

Reengineering how a firm performs a business process

• A)is a tool for pulling the pieces of strategy-critical processes out of different departments and unifying their performance in a single department or cross-functional work group.
• B)is the most frequently used tool of total quality management (TQM).
• C)requires that a company have many strategic partnerships and alliances with outsiders.
• D)is typically cheaper and easier-to-do than using Six Sigma techniques to achieve the same cost savings.
• E)is usually a company's most important "best practice" for achieving operating excellence.

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Definitions:

Plantwide Predetermined Rate

A single overhead absorption rate calculated for an entire manufacturing plant, used to allocate manufacturing overhead to individual products.

Machine-Hours

A measure of production time, indicated by the number of hours machines are operating in the manufacturing process.

Manufacturing Cost

The total cost incurred by a company to produce goods, including raw materials, labor, and overhead.

Calculated Selling Price

The calculated selling price is the price at which a product must be sold to cover its costs and achieve a desired profit margin.