Describe the function of a Pareto chart. How does the 80/20 rule apply?
What will be an ideal response?
Pareto charts are used to identify and prioritize problems to be solved. These are actually frequency charts that are aided by the 80/20 rule adapted by Joseph Juran from Vilfredo Pareto, the Italian economist. The 80/20 rule states that roughly 80% of the problems are created by roughly 20% of the causes. This means that there are a vital few causes that create most of the problems. This rule can be applied in many ways, and 80% and 20% are only estimates; the actual percentages may vary.
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The Service Revenue account is a permanent account
Indicate whether the statement is true or false
Which one of the following is not appropriate for improving the effectiveness of the disciplining process?
A. Discipline should be consistent with the severity of the offense. B. Discipline should be delayed until the employee has had time to forget about the offense. C. The employee should be told how to correct the situation. D. The discipline should be restricted to the immediate problem.