​_____ Is the Time That a Unit of Product Spends

question 48

Multiple Choice

​_____ is the time that a unit of product spends in the value stream, from start to finish.​​

• A) ​Lead time
• B) ​Wait time
• C) ​Cycle time
• D) ​Move time

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Definitions:

Direct Materials

Raw materials that can be directly identified and easily traced to the manufacturing of finished goods.

Factory Overhead

Refers to all indirect costs associated with manufacturing, including but not limited to utilities, rent, and equipment maintenance, which are not directly tied to the production of specific goods.

Manufacturing Process

A series of steps involving the conversion of raw materials into finished goods, including design, fabrication, and assembly operations.

Process Cost System

An accounting method used to assign production costs to products and services based on the processes they go through in the production cycle.