According to Ohno and Toyota, _____ Is a Category of Waste

question 34

Multiple Choice

According to Ohno and Toyota, _____ is a category of waste that moves material unnecessarily or long distances.

• A)unnecessary movement
• B)over-processing
• C)defect
• D)unnecessary transport
• E)overproduction

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Definitions:

Input

The resources used in the production process, such as labor, materials, and machinery.

Explicit Costs

These are direct payments made to others in the course of running a business, such as wages, rent, and materials.

Implicit Costs

Costs that represent potential benefits foregone when resources are not utilized in their next-best alternative use.

Economic Profit

The financial gain achieved when revenues from business activity exceed the explicit and implicit costs of that activity.