The Number of Kanbans Should Be Equal to

question 92

Multiple Choice

The number of kanbans should be equal to

• A) one
• B) the ratio of (demand during lead time + safety stock) to container size
• C) ½ of the EOQ
• D) one full day's production divided by the EOQ
• E) none of the above

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Definitions:

Patent Amortization

A method used to gradually reduce the carrying value of a patent over its useful life, reflecting its consumption, expiration, or obsolescence.

Indirect Method

The indirect method is a way of calculating cash flows from operating activities in a cash flow statement by starting with net income and adjusting for changes in balance sheet items.

Wages Payable

A liability account representing the amount of wages owed to employees for work done that has not yet been paid.

Indirect Method

An approach to assemble the cash flow statement by adjusting net income for fluctuations in balance sheet accounts to determine the cash flow originating from operations.