In a Lean Environment, Many Overhead Costs Are Assigned to

question 135

Multiple Choice

In a lean environment, many overhead costs are assigned to

• A)products using driver tracing.
• B)products as directly traceable costs.
• C)products using allocation methods.
• D)costs using plantwide overhead rates.

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Definitions:

Just-In-Time (JIT)

An inventory management system where materials are produced or received only as necessary to meet demand, reducing waste and costs.

Activity-Based Costing (ABC)

Activity-Based Costing (ABC) is a costing methodology that assigns costs to activities based on their use of resources, offering more precise costing information.

Supplier Performance Index

This index assesses a supplier's efficiency by analyzing their delivery times, quality of goods, and adherence to contractual agreements, providing a comprehensive overview of their performance.

Suppliers

Entities that provide goods or services to another entity, typically in a supply chain context.