The JIT Philosophy Does Not Focus on

question 23

Multiple Choice

The JIT philosophy does not focus on

• A)standardizing parts used in products.
• B)eliminating waste in the production process.
• C)finding the absolute lowest price for purchased parts.
• D)improving quality of output.

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Definitions:

Variable Overhead Efficiency Variance

The difference between the actual variable overhead costs incurred and the expected (or standard) costs for the achieved level of production.

Fixed Overhead Volume Variance

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

Denominator Activity

relates to the level of activity used to allocate fixed overhead costs to units produced, which can affect the unit cost of production.

Standard Hours

The predetermined amount of time expected to complete a task or job under normal conditions.