Bryan Inc Produces a Specialty Top-Quality Juice Machine

question 1

Multiple Choice

Bryan Inc. produces a specialty top-quality juice machine. The product, the JM50, requires four processes to be completed. Specifically, these processes are exterior construction, pulp filter insertion, painting, and packaging. Each process is performed at separate workstations with different completion rates:
Exterior construction can manufacture 100,000 juicer exteriors per day.
Pulp filter insertion can install 25,000 filters every 6 hours.
Painting can decorate 3,000 juicers every half hour.
Packaging can package 5,000 juicers per hour.
The plant operates 24/7, 24 hours a day every day of the week.
What cost management technique does this case illustrate? (Assume an average 30-day month.)

• A) Target costing.
• B) Theory of constraints.
• C) Life-cycle costing.
• D) ABC analysis.

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Definitions:

Surplus Food

Food production that exceeds the immediate consumption needs of the population, which can be stored or distributed as needed.

Joblessness

The state of being without employment, often measured as an unemployment rate within an economy.

Bonus Expeditionary Force

A group of World War I veterans who marched on Washington D.C. in 1932 to demand early payment of a promised bonus.

Unemployed Veterans

Individuals who have served in the military forces but are currently without employment, often focusing on their challenges in re-entering the civilian workforce.