The JIT Environment Has Caused a Reassessment of Product Costing

question 13

Multiple Choice

The JIT environment has caused a reassessment of product costing techniques.Which of the following statements is true with respect to this reassessment?

• A)Traditional cost allocations based on direct labor are being questioned and criticized.
• B)The federal government,through the SEC,is responsible for the reassessment.
• C)The reassessment is caused by the replacement of machine hours with labor hours.
• D)None of the above is true.

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Definitions:

Stress

A condition of physical, mental, or emotional discomfort caused by challenging or unfavorable situations.

Decrease

To make or become less in quantity, size, intensity, or degree.

Stress

A psychological and physical response to demands that exceed an individual’s coping abilities.

Work-Related Experiences

Encounters or activities that an individual has while employed, contributing to their professional skills and knowledge.