A Kanban System Is Best Described as a System That

question 49

Multiple Choice

A kanban system is best described as a system that ________.

• A)uses special locations for storing imported inventory to avoid paying duties
• B)seeks to improve quality by setting a rigorous goal of zero defects
• C)electronically links together suppliers, customers, and intermediaries
• D)facilitates JIT by using cards to control the flow of production through a factory

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Definitions:

Predetermined Overhead Rate

This is a calculated figure used to allocate manufacturing overhead costs to products based on a relevant activity such as machine hours or labor hours, set before the accounting period starts.

Direct Materials

Materials directly linked to the creation of certain products or services.

T-Accounts

A visual representation of accounts used in double-entry bookkeeping, showing debits on the left side and credits on the right.

Cost Of Goods Sold

The expenses directly related to the manufacture of products a company sells, which include the costs of materials and labor.