The Management Accountant Must Design Performance Measures to Evaluate and Control

question 18

Multiple Choice

The management accountant must design performance measures to evaluate and control JIT production.One of the dominant sources of information that the management accountant might use for this would be the personal observations of production line workers and team leaders.Another dominant source of information would be

• A)inventory turnover ratio.
• B)nonfinancial measures of time, inventory and quality.
• C)material cost variances.
• D)number of units sent to scrap/total scrap costs.
• E)total setup time for machines/total number of units started and completed.

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Definitions:

National Debt

The aggregate financial borrowing of a country's government, acquired through multiple methods.

Public Debt

The total amount of money that a government owes to creditors, often as a result of deficit spending.

Federal Government Deficits

Occurs when a government's expenditures exceed its revenues during a specific fiscal period, leading to borrowing or debt accumulation.

Fiscal Policy

Government modifications of its expenditure levels and tax policies to observe and manage a country's economic condition.