Any Point in an Operations System Where Limited Capacity Reduces

question 18

Multiple Choice

Any point in an operations system where limited capacity reduces the production capacity of an entire chain of activities is called a

• A) vortex
• B) stopgap
• C) production defect
• D) bottleneck

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Definitions:

Job Order Cost System

An accounting system that accumulates manufacturing costs separately for each job or order, tracking direct labor, direct materials, and applied overhead.

Oil Refinery

An industrial plant specialized in the process of converting crude oil into various products and fuels such as gasoline, diesel, and jet fuel through various chemical processes.

Hospital

A healthcare institution providing patient treatment with specialized medical and nursing staff and medical equipment.

Over/Underapplied Overhead

The difference between the overhead costs allocated and the actual overhead costs incurred.