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Activity Sampling - Process Design
This is a method of finding the percentage occurrence of a certain activity by statistical sampling and random observation. It is used when there is a need to measure levels of activity, but continuous time study is impractical or uneconomic; it can provide an economical estimate of acceptable accuracy.
Its uses include:
Consider a piece of equipment such as a photocopier. Let us say that, if a continuous time study were to be carried out during an eight-hour shift, the total non-working time is found to be 3.7 hours, or 46.3 per cent (see figure).
There is a fixed cost of$50,000 to start a production process. Once the process has begun, the variable cost per unit is $25. The revenue per unit is projected to be $45. Expressio
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