If Demand Volume Justifies It,the High-Volume,properly-Balanced Flow Shop Is the Best

question 106

True/False

If demand volume justifies it,the high-volume,properly-balanced flow shop is the best work configuration to obtain lowest costs and best quality.

---

Definitions:

Allocation Base

A measure or statistic used to distribute indirect costs to different cost objects, such as departments or products.

Budgeted Overhead

The estimated amount of all indirect costs associated with the production process or project.

Single Plantwide

A method used to allocate manufacturing overhead to products, using a single overhead rate for the entire manufacturing plant.

Overhead Rate

The rate at which indirect costs are allocated to produced goods or services, often expressed as a percentage of direct labor or materials cost.