Which of the Following Manufacturing Costs Is Assigned to Products

question 15

Multiple Choice

Which of the following manufacturing costs is assigned to products in JIT environment using direct tracing?

• A)material handling
• B)repairs and maintenance
• C)custodial services
• D)all of these

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Definitions:

Planning Horizon

The future time period over which plans are made and resources are allocated.

High-Low Method

A method of separating a mixed cost into its fixed and variable elements by analyzing the change in cost between the high and low activity levels.

Fixed Component

A portion of the total costs that remains unchanged regardless of the level of activity or production volume.

Lubrication Cost

An expense category covering the costs associated with the lubrication of machinery and equipment to ensure smooth operation.