Which of the Following Is an Advantage of Pull Systems

question 8

Multiple Choice

Which of the following is an advantage of pull systems

• A) They are efficient even when schedules are missed.
• B) They minimize inventory and production costs.
• C) They forecast changes in customer demand.
• D) They reduce transportation costs.

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Definitions:

Variable Overhead Rate Variance

The difference between actual variable overhead costs incurred and the standard variable overhead costs expected for the actual production level.

Fixed Manufacturing Overhead Budget Variance

The discrepancy between the budgeted fixed overhead costs and the actual fixed overhead incurred during production.

Fixed Manufacturing Overhead Volume Variance

The difference between the budgeted and actually applied fixed manufacturing overhead, based on standard costs for a given period.

Fixed Overhead Budget Variance

The difference between actual fixed overhead costs and the budgeted or expected fixed overhead costs.