Multiple Choice
A company keeps 20 days of materials inventory on hand to avoid shutdowns due to materials shortages. Carrying costs average £4,000 per day. A competitor keeps 10 days of inventory on hand, and the competitor's carrying costs average £2,000 per day. The nonvalue-added costs for the company are
A) £80,000.
B) £40,000.
C) £20,000.
D) £-0-.
Correct Answer:
Verified
Correct Answer:
Verified
Q3: The Kanban system controls inventory through the
Q9: Inspection labour costs are<br>A)prevention costs.<br>B)appraisal costs.<br>C)internal failure
Q17: JIT avoids shutdowns due to materials shortages
Q49: Benchmarking<br>A)is an approach to standard setting that
Q57: _ focuses on nonvalue-added activities.<br>A)Activity sharing<br>B)Activity elimination<br>C)Activity
Q68: Activity-based management attempts to<br>A)identify and eliminate all
Q106: Which of the following is an example
Q108: Merollis Company instituted a quality program last
Q109: Rollo Company has developed cost formulas for
Q112: _ involves choosing among various sets of