Which of the following statements is accurate concerning costs and time?
A) Costs associated with time reduce the bottom line for business and for its customers in several ways.
B) Direct materials costs, direct labor costs, and overhead costs are indirectly related to time.
C) The amount of time a product or a customer is in a productive system isn't all devoted to processing and adding value.
D) Both A and B
E) Both A and C
F) A, B and C

Question

Quizplus · Accepted Answer

Both statements A and C are accurate. Statement A is correct because costs related to time, such as delays, can negatively impact both the business and its customers financially. Statement C is accurate because not all the time a product or customer spends in a system is directly related to value-adding activities; some of it may be spent waiting or in non-productive activities. Statement B is incorrect because direct materials, direct labor, and overhead costs are directly related to time, as they all contribute to the total time and cost of producing a product or service.

Which of the Following Statements Is Accurate Concerning Costs and Time