Schedule of Activity Costs
-A customer service department has the following resolution response time data: Average Response Time
First contact 0.25 hr.Service scheduling 0.50 hr.Wait for service 24.00 hrs.Service 1.50 hrs.Total resolution time 26.25 hrs.What is the value-added ratio (rounded to one decimal place) in this process?
A)5.7%
B)8.6%
C)28.6%
D)91.4%

Question

Schedule of Activity Costs  ​
-A customer service department has the following resolution response time data: Average Response Time
First contact 0.25 hr.Service scheduling 0.50 hr.Wait for service 24.00 hrs.Service 1.50 hrs.Total resolution time 26.25 hrs.What is the value-added ratio (rounded to one decimal place) in this process?
A)5.7% 
B)8.6% 
C)28.6% 
D)91.4%

Quizplus · Accepted Answer

The value-added ratio is calculated by dividing the value-added time by the total resolution time. Here, the service time (1.50 hrs) is the only value-added time. So, the ratio is (1.50 / 26.25) * 100 = 5.71%, rounded to one decimal place is 8.6%.

Schedule of Activity Costs ​

Schedule of Activity Costs