Which of the Following Is Not a Benefit of JIT

question 61

Multiple Choice

Which of the following is not a benefit of JIT systems?

• A)Inventories are reduced
• B)Space requirements are reduced
• C)Quality is increased
• D)Lead times are increased
• E)Disruptions in production are reduced

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Definitions:

Departmental Overhead Rate

The rate at which indirect costs are allocated to products or services based on department-specific activities.

Direct Labor Hours

The total hours worked by employees that can be directly attributed to the production of goods or services.

Mixing Department

A segment in the manufacturing process where various ingredients or components are combined to produce a final product.

Overhead Costs

Overhead costs refer to the ongoing expenses of operating a business that are not directly attributed to producing goods or services, such as rent, utilities, and administrative expenses.