In a Two-Card Kanban System

question 30

Multiple Choice

In a two-card kanban system:

• A)the production card signals when a move card should be moved to the next process step.
• B)the move card signals when a container of parts should be produced.
• C)the production card signals when a container that held parts should be returned to inventory.
• D)the move card signals when a container of parts should move to the next process step.

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Definitions:

Realized Gross Profit

The gross income that a company has earned and recognized from its sales or services, after accounting for the cost of goods sold, but before deducting operating expenses.

Installment Sales Revenue

Revenue recognized from sales that are paid in installments over a period, rather than in a single transaction.

Installment Sales Method

An accounting technique used to recognize revenue from sales made on credit, where income is recognized proportionally as payments are received.

Recognized Gross Profit

Gross profit that has been realized and reported in the financial statements of a company, calculated as sales revenue minus the cost of goods sold.