Which One of the Following Statements Is Best

question 63

Multiple Choice

Which one of the following statements is best?

• A)Two operating rules for the Kanban system are (1)the container size should be equal to at least seven days of supply and (2)each container must have a Kanban card.
• B)The Kanban system is more effective when the assembly schedule calls for small lots and does not fluctuate much from day to day.
• C)The number of Kanban cards should be equal to the desired safety stock times alpha.
• D)Supplier performance is much more important in U.S.environments than such factors as lot sizes,scrap losses,and worker flexibility.

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Definitions:

Manufacturing Overhead Costs

These are indirect costs related to manufacturing that cannot be directly traced to specific units produced, such as utilities, depreciation, and factory equipment maintenance.

Planned Activity Level

The expected volume of production or sales used in budgeting and decision-making processes.

Machine Hours

A measure of the amount of time a machine is operated, used for allocating manufacturing costs.

Flexible Budget Total

A financial plan that adjusts or varies with changes in the volume of activity or business.