The Following Are Characteristics of Lean When Contrasted with Traditional

question 5

Multiple Choice

The following are characteristics of Lean when contrasted with traditional systems,EXCEPT:

• A)Priorities are a limited market and few options
• B)Capacity is flexible and moderately utilized
• C)Suppliers are many,competitive,deliver to central receiving area and have independent forecasts
• D)Quality is at the source,continuous and with statistical process controls

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Definitions:

Variable Manufacturing Overhead

Indirect manufacturing costs that fluctuate with production volume, such as utility costs for running production equipment.

Fixed Manufacturing Overhead

The total of all production costs that do not change with the level of output, including salaries, rent, and insurance.

Depreciation

The allocation of the cost of an asset over its useful life, reflecting the loss in value over time.

Master Budget

An inclusive financial planning document that combines all of a company's individual budgets and plans for a specific period.