Widespread Participation in Process Analysis Is Essential Not Only Because

question 10

Multiple Choice

Widespread participation in process analysis is essential not only because of the work involved but also because:

• A) employees tend to neglect their regular work duties, thus no one falls too far behind.
• B) it builds commitment.
• C) no one can analyze a process by himself.
• D) a silo mentality should prevail and this requires large numbers of workers.

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Definitions:

Estimated Activity Base

A projected measure of activity, such as labor hours or machine hours, used for allocating overhead costs in budgeting and costing.

Predetermined Overhead Rate

A rate calculated at the beginning of a period, used to allocate estimated overhead costs to products or services.

Direct Labor Dollars

The total cost of labor that can be directly attributed to the production of goods or services.

Factory Overhead

All indirect costs associated with manufacturing, such as utilities and maintenance, not directly tied to the production of goods.