Question

Which of the following statements about process analysis is TRUE?
A. Process analysis only matters to those who are in accounting.
B. Process analysis is all about creating demand.
C. Process analysis helps one analyze all the activities involved in providing one unit of supply.
D. Process analysis is all about keeping track of revenue and costs.

Answer 1

The following statement about process analysis is true.

C. Process analysis helps one analyze all the activities involved in providing one unit of supply.

Process analysis involves analysis of all activities starting from selection of inputs like labor, energy,materials and capital equipment to supply of outputs. Processes can have a major impact on the performance of a business. Planning a good process analysis requires the manager to include all the essential steps needed to get the final output. Process analysis is an essential part of every business, whether it may be production, distribution or retail industry.