Consider the following actions of a manufacturing firm trying to manage the costs of material handling from the direct materials inventory to the production line. Required: Match each of the process improvements listed with how it delivers cost reductions. Process Improvement Delivers Cost Reduction 1. The material inventory is placed closer to the production line. 2. Production runs have been made longer (more units produced in each run). 3. More direct material is being purchased resulting in larger direct material inventory. Improving the efficiency of the activity. Neither reducing the frequency of the activity nor improving the efficiency of the activity. Reducing the frequency of the activity.
Consider the following actions of a manufacturing firm trying to manage the costs of material handling from the direct materials inventory to the production line. Required: Match each of the process improvements listed with how it delivers cost reductions. Process Improvement Delivers Cost Reduction 1. The material inventory is placed closer to the production line. 2. Production runs have been made longer (more units produced in each run). 3. More direct material is being purchased resulting in larger direct material inventory. Improving the efficiency of the activity. Neither reducing the frequency of the activity nor improving the efficiency of the activity. Reducing the frequency of the activity.
Chapter12: Balanced Scorecard And Other Performance Measures
Section: Chapter Questions
Problem 9EB: Classify each of the following performance measures into the balanced scorecard perspective to which...
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Transcribed Image Text:Consider the following actions of a manufacturing firm trying to manage the costs of material handling from the direct materials
inventory to the production line.
Required:
Match each of the process improvements listed with how it delivers cost reductions.
Process Improvement
Delivers Cost Reduction
1. The material inventory is placed closer to the production line.
2. Production runs have been made longer (more units produced in each run).
3. More direct material is being purchased resulting in larger direct material inventory.
Improving the efficiency of the activity.
Neither reducing the frequency of the activity nor
improving the efficiency of the activity.
Reducing the frequency of the activity.
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