For a JIT System to Be Successful,the Firm and Its

question 80

Multiple Choice

For a JIT system to be successful,the firm and its vendors must:

• A) cooperate.
• B) compete.
• C) participate in a vertical marketing system.
• D) put a VMI system in place.
• E) none of these.

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Definitions:

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual units of production, calculated before the period begins.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the standard cost allocated to production, based on the actual hours worked.

Machine-Hours

A measure of production time, calculated by the number of hours machines are operating in the manufacturing process.

Budget Variance

The difference between budgeted figures and actual figures for a particular accounting category.