The Typical Goal Used When Developing a Process-Oriented Layout Strategy

question 65

Multiple Choice

The typical goal used when developing a process-oriented layout strategy is to

• A) minimize the distance between adjacent departments
• B) minimize the material handling costs
• C) maximize the number of different tasks which can be performed by an individual machine
• D) minimize the level of operator skill necessary
• E) maximize job specialization

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Definitions:

FIFO Process Cost Method

An accounting method for valuing inventory and the cost of goods sold based on the assumption that the earliest goods purchased or manufactured are sold first.

Equivalent Units

A method used in process costing that converts partially completed units into a number of fully completed units.

Direct Materials Costs

The cost of raw materials that are directly used in the manufacture of a product.

FIFO Method

First-In, First-Out, an inventory valuation method where the first items purchased are the first ones to be removed from inventory.