Japanese Manufacturers Often Take a Middle Ground Between Purchasing from a Few

question 35

Multiple Choice

Japanese manufacturers often take a middle ground between purchasing from a few suppliers and vertical integration. This approach is

• A) kanban
• B) keiretsu
• C) samurai
• D) poka-yoke
• E) kaizen

---

Definitions:

Materials Quantity Variance

The variance between the actual and projected amounts of materials consumed in manufacturing, multiplied by the unit's standard cost.

Standard Cost

An estimated or pre-determined cost of manufacturing a product, which is used for budgeting and performance evaluation.

Fixed Overhead Volume Variance

The difference between the budgeted and actual fixed overhead costs, attributed to variations in production volume.

Fixed Overhead Budget Variance

This variance measures the difference between the actual fixed overhead costs incurred and the budgeted fixed overhead costs. It helps identify discrepancies in planned versus actual spending.