Companies That Operate in a Lean Production and Just-In-Time Manufacturing

question 40

Multiple Choice

Companies that operate in a lean production and just-in-time manufacturing environment are more likely to experience which of the following?

• A) Reduced manufacturing flexibility.
• B) Increased levels of raw materials inventory.
• C) Increased production time.
• D) Increased product quality.

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Definitions:

Cost of Goods Manufactured

The total cost of producing goods during a specific accounting period, including labor, material, and overhead costs.

Job-Order Costing

An accounting method used to track costs and evaluate the profitability of individual jobs or batches, particularly useful in custom or unique production environments.

Direct Costs

Expenses that can be directly traced to the production of specific goods or services.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to products or job orders, based on a chosen activity base.