Listed Below Are a Number of Common Manufacturing Costs

question 124

Essay

Listed below are a number of common manufacturing costs.For each cost,state whether the cost would be considered a direct (D)or indirect (I)cost in a traditional manufacturing environment and in a JIT manufacturing environment.
$\begin{array}{lcc}\text { Cost Element } & \text { Traditional } & \text { JIT } \\& \text { Manufacturing } & \text { Manufacturing } \\& \text { Environment } & \text { Environment }\\\text {Insurance}\\\text {Property taxes}\\\text {Equipment depreciation}\\\text {Raw materials}\\\text {Materials handling}\\\text {Operating supplies}\\\text {Power}\\\text {Heat and light}\\\text {Labor of equipment operators}\\\text {President's salary}\end{array}$

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Definitions:

Belief in a Just World

The assumption that actions always yield fair and just consequences, wherein good deeds are rewarded and bad deeds are punished.

Equity

The concept or principle of fairness or justice in the way people are treated and opportunities are distributed.

Equality

The state of being equal, especially in status, rights, and opportunities.

Compromise

A method of resolving a disagreement where each party gives up something that was originally wanted to reach a mutually acceptable solution.