If It Takes 100 Minutes to Complete a Circuit,demand at the Next

question 16

Multiple Choice

If it takes 100 minutes to complete a circuit,demand at the next work center is 5 parts per minute,and a kanban container holds 20 parts,how many containers are required?

• A) 25
• B) 5
• C) 40
• D) 20

---

Definitions:

Selling And Administrative Expenses

Costs related to sales activities and general management of a business, excluding production costs.

Budgeting

The process of creating a plan to spend money, setting forth projections for revenues and expenses over a certain period of time.

Activity Variance

The difference between what was expected in terms of spending or usage during a period and what actually occurred.

Administrative Expenses

Costs associated with the general administration of a business, including items like salaries of executives, office supplies, and utilities.