Ford Motor Company Reorganized Its Procurement Process by Simplifying and Streamlining

question 68

Multiple Choice

Ford Motor Company reorganized its procurement process by simplifying and streamlining the process itself and as a result was able to cut the size of the accounts payable department by 95 percent.This is an example of:

• A) retrenchment.
• B) kanban.
• C) kaizen.
• D) continuous improvement.
• E) reengineering.

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Definitions:

Cost Information

Refers to data related to the amount of money required to produce goods or services, including production, maintenance, and other associated expenses.

Favorable

A term that indicates a positive variance or outcome, especially in the context of budgeting and financial analysis.

Unfavorable

A term often used in budgeting and financial analysis to describe results that are worse than expected or budgeted figures.

Variable Overhead Costs

Costs that fluctuate with changes in production volume or activity levels, such as utilities or raw materials, contrasting with fixed costs.