Which of the Following Is an Objective of Lean Production

question 62

Multiple Choice

Which of the following is an objective of lean production?

• A) Reducing the quality of a product to keep unit costs low
• B) Reducing setup times for complex equipment
• C) Replacing customized production with mass production
• D) Decreasing utilization of individual machines through scheduling
• E) Increasing the level of minimum efficient scale of output

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Definitions:

Direct Labor

involves labor costs directly associated with the manufacturing of products, easily traceable to the end product.

Overhead Costs

Expenses related to the operation of a business that are not directly tied to a specific product or service, such as rent, utilities, and administrative expenses.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities related to the production of goods or services for more accurate cost management.

Activity Rates

The cost driver rates used in activity-based costing to allocate overhead costs to products or services.