Nonbottleneck Management Principles Differ from Bottleneck Management Principles Because According

question 21

Multiple Choice

Nonbottleneck management principles differ from bottleneck management principles because according to nonbottleneck management principles, _____.

• A) idle time is acceptable if there is no work to do
• B) an hour lost at a nonbottleneck resource is an hour lost for the entire process or factory output
• C) large order sizes should be used to minimize setup time and maximize resource utilization
• D) the input should always exceed the capacity

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Definitions:

Conversion Cost

The aggregate cost of direct labor and manufacturing overhead associated with converting raw materials into finished goods.

Direct Materials

Raw materials that are directly incorporated into a finished product.

Work in Process

Inventory representing partially completed goods, which includes the cost of raw materials, labor, and overhead.

Cost Reconciliation

The process of verifying and reconciling the total cost incurred against the costs accounted for in a specific period.