Which of the Following Assumptions Does Not Belong in a List

question 35

Multiple Choice

Which of the following assumptions does not belong in a list of characteristics of lean production?

• A)labor is more costly than machines
• B)set up time can be reduced
• C)minimize inventory to cut costs and wastage
• D)maximize backwards integration
• E)inspection to prevent defective production

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Definitions:

Direct Labor

The expenses incurred on salaries for workers directly engaged in manufacturing goods or providing services.

Overhead Costs

The ongoing expenses of operating a business that are not directly attributed to product production, including administrative and selling expenses.

Work in Process Account

An account in the general ledger that accumulates costs related to partially completed products during a specific accounting period.

Job Order Costing Method

A costing method used to accumulate costs of production by job or order, suitable for customized or unique products and services.