Which of the Following Is TRUE Regarding the Steps to Reducing

question 50

Multiple Choice

Which of the following is TRUE regarding the steps to reducing setup times?

• A) The first step involves performing as much setup preparation as possible while the process/machine is operating.
• B) The cycle of steps is repeated until setup time is reduced to under a minute.
• C) The standardization of both tooling and work procedures is advantageous to setup time reduction.
• D) Move material closer and improve material handling are done before operator training.
• E) All of these are true.

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Definitions:

Factory Overhead Allocation

The process of distributing indirect manufacturing costs, such as utilities and rent, across various products based on a predetermined rate or method.

Service Companies

Businesses that provide services to consumers or other businesses rather than producing goods.

Activity-Based Costing

A pricing approach that allocates overhead and indirect expenses to associated goods and services according to their consumption of resources.

Product Costs

Costs that are directly associated with the creation of a product, including materials, labor, and manufacturing overhead.