It Is Correct That Under a Successful Just-In-Time Production and Inventory

question 14

Multiple Choice

It is correct that under a successful just-in-time production and inventory control system:

• A) there must be only one supplier
• B) distance from the supplier is not an issue as long as the supplier is reliable
• C) suppliers will normally make frequent deliveries of small lots of materials
• D) all of the above are correct

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Definitions:

Direct Labor

The wages and other costs for labor directly involved in the production of goods or services.

Annual Overhead

The total recurring business expenses not directly tied to the production of goods or services, calculated on a yearly basis.

Manufacturing Overhead-Applied

The allocation of estimated manufacturing overhead costs to individual products or job orders based on a predetermined rate.