Which of the Following Is a Dynamic Lot-Sizing Technique That

question 85

Multiple Choice

Which of the following is a dynamic lot-sizing technique that calculates the order quantity by comparing the carrying cost and the setup (or ordering) costs for various lot sizes and then selects the lot size in which these are most nearly equal?

• A)Kanban
• B)Two-bin system
• C)MRP II
• D)Least unit cost
• E)Least total cost

Utilize resources effectively for career planning and exploration.

Approach career decision-making and major selection with informed strategies and actions.

Understand the chronological order of process steps.

Recognize transitional expressions that indicate sequence or time.

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Definitions:

Manufacturing Overhead

includes all manufacturing costs that are not directly related to the production of goods, such as factory rent, utilities, and maintenance expenses.

Unit Product Cost

The cumulative expense of manufacturing a single product unit, encompassing direct materials, direct labor, and overhead costs related to production.

Predetermined Overhead Rate

A rate used to allocate overhead costs to products or services, calculated before the actual costs are known, based on estimated costs.

Overhead Rate

A measure used to allocate overhead costs to products or services, often calculated by dividing total overheads by a base measure such as labor hours or machine hours.