Under what conditions would the activity capacity used be zero?
A)If the activity is value-added.
B)If the activity is non-value-added.
C)If the activity is discretionary.
D)It would never be set at zero.

Question

Quizplus · Accepted Answer

The activity capacity used would be zero only if the activity is non-value-added, meaning that it does not contribute to the final product or service that the customer is willing to pay for. In this case, it would be considered waste and should be eliminated. If the activity is value-added, it should have some level of activity capacity used, and if the activity is discretionary, it may have a flexible capacity that can be adjusted based on the needs of the organization. It is possible for activity capacity used to be zero, so answer D is incorrect.

Under What Conditions Would the Activity Capacity Used Be Zero