Explain Why a Firm Might Adopt the Just-In-Time System

question 106

Essay

Explain why a firm might adopt the just-in-time system. Why might a firm choose a different inventory system?

Calculate the amount of manufacturing overhead charged to a specific job when a predetermined overhead rate is used.

Determine the cost of unused capacity and its effect on the income statement.

Apply the predetermined overhead rate to various scenarios to identify the manufacturing overhead applied.

Recognize the impact of different allocation bases on the calculation of predetermined overhead rates.

---

Definitions:

Exergonic Reaction

A chemical reaction that releases energy by light or heat, making it energetically favorable.

Free Energy

The portion of a system's energy that is able to perform work when temperature and pressure are uniform throughout the system.

Concentration Gradient

A concentration gradient is a variation in the concentration of a substance across a space or a membrane, leading to the movement of particles from an area of higher concentration to an area of lower concentration.

Expend Energy

The act of using biological or mechanical power for physical activities, processes, or to accomplish tasks.