Which of the following actions is part of the pre-sales and operations planning meeting?
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A company's high-volume products are produced on an automated manufacturing line, and its low-volume products are produced using a labor intensive method. The use of a cost accounting system in which overhead are allocated to product cost as a percentage of direct labor hours will have which of the following results?
I. High-volume products are undercosted;
II. Low-volume products are undercosted;
III. Cost reduction efforts are biased in favor of labor cost reductions;
IV. Cost reduction efforts are biased in favor of material cost reductions;
A company uses centralized planning at the manufacturing site for DRP decisions. How is the reorder point typically established for this type of centralized planning?
If a company is familiar with high volume manufacturing, what is the caution when introducing a new low volume product line?
Marketing asks the master schedule to divide an economic run and move half of it inside the planning time fence in order to meet a special customer demand. Which of the following is the most likely negative impact of such an action?
A manufacturing system is characterized by the emergence of standard designs, price competition and the importance of process development. It is in which of the following stages of the life cycle?
Which of the following statements about inventory is true in an ETO environment
When buying capital equipment, the large payment is typically followed by a series of smaller receipts or inflows recognized as either additional revenue or
Improvement programs at a manufacturing company have increased efficiency 10% and utilization 5%, what is the effect on the theoretical capacity?
What issue is often overlooked when an organization eliminates a product line?
If a company changes to activity-based costing, which of the following traditional measures will be affected?
I. Direct labor costs
II. Profit before taxes and depreciation
III. Allocation of overhead cost
IV. Unit product cost
