Which of the Following Statements Holds for Kanban Production Control

question 46

Multiple Choice

Which of the following statements holds for Kanban production control systems?

• A)The authority to produce or supply additional parts comes from upstream operations
• B)In a paperless control system, containers can be used instead of cards
• C)The cards or containers make up the Kanban push system
• D)They require substantial quantitative analysis prior to implementation
• E)They have not been successful outside of Japan and the United States

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Definitions:

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, providing a more relevant comparison of actual to budgeted performance.

Total Variable Cost

The sum of all variable costs (costs that change with production volume) involved in producing a specific level of output.

Activity Declines

A reduction in the level of operations, production, or business activities.

Activity Variance

measures the difference between the actual costs incurred and the budgeted costs based on the actual level of activity.