A Benefit of CAD (Computer Aided Design)and CAM (Computer Assisted

question 94

Multiple Choice

A benefit of CAD (Computer Aided Design) and CAM (Computer Assisted Manufacturing) to manufacturers is it ________.

• A)provides custom-designed products without incurring higher costs
• B)replaces the need for human labor by using robots
• C)reduces the costs of materials needed to be kept in the inventory
• D)is less complicated to operate than other manufacturing software

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Definitions:

Traditional Costing Systems

Costing methods that allocate overhead costs based on a predetermined rate, often using direct labor hours or machine hours as the allocation base.

Activity-based Costing System

An activity-based costing system is an accounting method that assigns costs to products or services based on the activities and resources that go into production, providing more accurate cost information.

Measuring Ingredients

Measuring Ingredients involves quantitatively determining the proportions of various components that go into a product, critical in both cooking and manufacturing.

Batch Level Activities

These activities involve costs incurred for every batch produced, regardless of the volume of units in the batch.