Linking a Part Requirement with the Parent Component That Caused

question 7

Multiple Choice

Linking a part requirement with the parent component that caused the requirement is referred to as

• A) net requirements planning
• B) a time fence
• C) pegging
• D) kanban
• E) leveling

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Definitions:

Factory Overhead Volume Variance

The difference between the budgeted and actual overhead costs due to variations in the volume of production.

Direct Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, based on the hours actually worked.

Time Variances

The difference between actual time taken to perform an activity and the standard time expected.

Standard Labor Hours

The predetermined amount of time expected to be required to complete a specific task or job.