If a process is people-paced and lacks a reliable time-linked measure of capability, then the appropriate tool for improving capacity baseline measures is:
A) Standard cost variance analysis.
B) Flexible budgeting.
C) Activity-based management.
D) Just-in-time production.

Question

Quizplus · Accepted Answer

Activity-based management focuses on managing activities as the route to improving the value received by the customer and the profit received by providing this value. This approach is suitable for processes that are people-paced and lack a reliable time-linked measure of capability, as it allows for a more detailed understanding and management of costs and processes that do not fit neatly into traditional time or production volume measures.

If a Process Is People-Paced and Lacks a Reliable Time-Linked