Which of the Following Is NOT an Advantage of the Predetermined

question 148

Multiple Choice

Which of the following is NOT an advantage of the predetermined data approach to work measurement?

• A)Standards can be set before production begins.
• B)New work methods can be compared without conducting a time study.
• C)Performance ratings are not needed to derive standards.
• D)The approach is particularly applicable to firms with a flexible flow strategy.

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Definitions:

Goodwill Impairment

A financial charge that occurs when the book value of goodwill exceeds its recoverable amount, indicating the asset is not as valuable as previously thought.

Acquisition Differential

The difference between the acquisition cost of an entity and the fair value of its net identifiable assets at the time of acquisition.

Land Account

An account on a company's balance sheet that represents the cost of land owned by the company without any depreciation applied, since land is considered to have an unlimited useful life.

Investment Account

An account held at a financial institution for the purpose of managing securities, such as stocks and bonds, for investment purposes.