Match each item with the correct statement below.
-Increases the efficiency of necessary activities by using economies of scale.
A)cycle time
B)direct tracing
C)activity sharing
D)driver tracing
E)value-added activities
F)activity selection

Question

Quizplus · Accepted Answer

Activity sharing refers to the practice of combining several activities with similar processing requirements into one larger activity, thereby increasing processing efficiency and reducing cycle time through economies of scale.

Answer: E 
 Value-added activities are those that add value to a product or service from a customer perspective. By identifying and streamlining these activities, an organization can reduce cycle time and improve overall efficiency.

Other options:
A) Cycle time refers to the time it takes to complete a process or activity. While reducing cycle time can improve efficiency, it doesn't necessarily involve economies of scale.
B) Direct tracing and driver tracing are methods for identifying costs associated with specific products or services, but they don't directly relate to improving efficiency.
F) Activity selection involves choosing which activities to perform based on their importance to organizational goals, but it doesn't necessarily involve economies of scale.

Match Each Item with the Correct Statement Below