Which of the Following Is Not a Result of Adopting

question 76

Multiple Choice

Which of the following is not a result of adopting a just-in-time operating environment?

• A) Reduced materials waste
• B) Reduced production time
• C) Reduced total labor hours
• D) Reduced production costs

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Definitions:

Grinding Costs

Costs incurred in the process of grinding materials; typically associated with manufacturing processes that require fine material breakdown.

Investment Center

A subunit of the firm that has decision rights over the amount of capital to be invested, the prices of its products, and the manufacturing process and is usually composed of several profit centers.

Profit Center

A subunit of the firm with the decision rights over prices and manufacturing processes to maximize profit. Profit centers are evaluated on meeting target profits and are composed of several cost centers.

Responsibility Centers

Units or departments within an organization whose managers are accountable for specific financial operations and performance.