Which of the Following Is NOT a Correct Statement About

question 60

Multiple Choice

Which of the following is NOT a correct statement about bottleneck resources?

• A) Work at all times to maximize throughput and resource utilization.
• B) An hour lost is an hour lost for the entire process or factory output.
• C) Use small order sizes.
• D) Work-in-process buffer inventory is placed in front of workstations to maximize resource utilization.

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Definitions:

Indirect Restructuring Costs

Costs associated with reorganizing a business that are not directly connected to the physical process of restructuring, such as financial or reputational impacts.

Professional Judgement

The use of professional knowledge and skills to make decisions and solve problems.

Best Estimate

The amount which represents, as closely as possible, what the entity would rationally pay to settle the present obligation at the end of the reporting period or to provide consideration to a third party to assume it.