Once a process is charted, the analyst is able to estimate annual cost ?

Question

BlackTom AI · Accepted Answer

First, consider what the question is asking: whether charting a process inherently enables an analyst to estimate annual cost.
Option 1: True. The statement says that once a process is charted, the analyst can estimate annual cost. While charting captures the sequence of steps and resources involved, it does not by itself guarantee an accurate annual cost estimate. Costs depend on data such as activity volumes, unit costs, and resource usage over time. Without these inputs and appropriate costing methodology (e.g., activity-based costing or time-driven costing), the estimate may be speculative. Therefore this option is not reliably correct.
Option 2: False. This option asserts that charting alone does not guarantee the ability to estimate annual cost. This aligns with practical workflow analysis: process charts document steps and potential bottlenecks, but turning that into a credible annual cost requires additional data (throughput, frequencies, durations, costs per resource, inflation, etc.) and a costing model. If those pieces are missing, the cost estimate cannot be determined accurately, making the statement true in a cautious, methodical sense. Hence, this option correctly reflects the limitation of charting for cost estimation.
In summary, the misconception in option 1 stems from assuming charting provides all financial details, while the strength of option 2 lies in recognizing that cost estimation requires more than just process maps, such as quantitative inputs and a costing framework.

25_2 MGT-3500 Operations Management

Once a process is charted, the analyst is able to estimate annual cost ?

View Explanation

Log in for full answers

Similar Questions

Question at position 20 When preparing a SIPOC process map you should always start with... Supplier columnInput columnOutput columnCustomer column

位置22的问题 Which type of process map identifies the sequence of activities in a general way?High-level process map Detailed process mapOutline process map Comprehensive process map清除选择

Question at position 22 Which type of process map identifies the sequence of activities in a general way?High-level process map Detailed process mapOutline process map Comprehensive process mapClear my selection

Question at position 4 Processes that are mapped at the aggregate level, simply as an input–transformed–output process are known as an outline process map.TrueFalse

A flowchart created at the strategic level of an organization should show:

Which are the two main differences between flowchart and process chart ?

More Practical Tools for International Students

Exam Browser Assistant

Stylized Writing Assistant

Plagiarism Checker Assistant

Citation Assistant

In-Class Translation Assistant

Class Notes Assistant

Quiz Search Assistant

Past Exam Questions by School

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler