What are the primary goals of lean manufacturing?

Q: What is the decision rule concerning products to emphasize when facing a constraint?

A: Constraint management is a management technique used to make decisions about production and sales…

Q: Why are support department costs difficult to apply to products?

A: Given: The difficulty in applying the support department costs on products.

Q: Why there is an unmistakable trend in manufacturing to improve quality?

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Q: Why would someone use variable costing over absorption Costing ?

A: The variable costing method is the method that only includes the variable costing whereas,…

Q: Why is activity-based costing growing in popularity?

A: Unlike traditional method, the ABC costing method does not use the plant wide overhead rate, rather…

Q: What are some factors that affect variable costs?

A: Variable costs: A variable cost is a business expenditure that varies in proportion to manufacturing…

Q: Which of the following is not a feature of a process production system?  Repetitive production…

A: Production process system is that which is used for a large level of production and where continuous…

Q: What is meant by a product’s contribution margin ratio? How is this ratio useful in planningbusiness…

A: Contribution Margin Ratio: The contribution margin ratio shows the amount of difference in the…

Q: What is meant by aggregate productivity, and what are its limitations?

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Q: What are the arguments for and against "backflush" costing?

A: Arguments for and against Backflush costing: Backflush costing system is that the method of…

Q: What are the main features of JIT production, and what are its benefits and costs?

A: Just-in-time:   Just-in-time system is a “demand pull” system, in which materials are obtained and…

Q: How would you recommend stabilizing the company's unit product cost?

A: Unit cost of a product is determined by dividing the total cost of the units produced by the total…

Q: Why do engineers need cost data?

A: The question is based on the concept of cost in engineering projects.

Q: How lean production eliminate the difference between absorption and variable costing

A: Following is the answer to the given question

Q: Explain how the work cell manufacturing layout increases productivity.

A: In JIT (Just-In-Time) manufacturing system, production is completed in self-contained work cells.…

Q: Why are some quality costs hard to measure?

A: Quality Cost: The quality cost refers to the costs associated with the prevention and detection of…

Q: Why should managers worry about product overcosting or undercosting?

A: A product is said to be over costing when it consumes low level of resources but is reported to have…

Q: How does lean manufacturing differ from the conventional manufacturing process?

A: Lean ManufacturingThe main objective of lean manufacturing is to yield products with high quality,…

Q: Why do companies that implement Lean Production tend to have minimal inventories?

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Q: What is value-chain analysis? What role does it play in strategic cost analysis?

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Q: Why do managers need to know the cost of their products?

A: Job order costing: Job order costing is one of the methods of cost accounting under which cost is…

Q: re the difference between traditional product costs and activity-based product

A: Traditional product costs: The traditional method of allocating product costs is to allocate the…

Q: Which costing system would be more efficient when direct materials and direct labor costs are high,…

A: There are mainly two types costing method Traditional costing Activity based costing

Q: Why do product costing systems using a single, volume-based cost driver tend to overcost highvolume…

A: Costing: Costing is a technique used in cost accounting to determine the cost of a product. With…

Q: How is “yield” determined for a process manufacturer?

A: Process costs It is a method of cost accounting, which is used where the production is continuous,…

Q: How are cost structures fundamentally different between the traditional and computer-integrated…

A: Sales order starts the manufacturing process under a traditional manufacturing environment. The…

Q: What are three common problems with push production?

A: Push production:   A push-based manufacturing approach also referred to as make-to-stock where the…

Q: How useful is cost–benefit analysis?

A: A cost-benefit analysis, commonly known as CBA, is the process of comparing the various projects and…

Q: A company with an advanced manufacturing environment typically will have a higher break-even point,…

A: Advanced manufacturing environment: It can be defined as a situation where a strong competition…

Q: characteristic of a lean production layout?

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Q: Explain why traditional cost allocation methods fail in a computer-integrated manufacturing…

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Q: How does automation help achieve manufacturing flexibility?

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Q: Why do product-costing systems based on a single, volume-based cost driver tend to overcost…

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Q: What is likely the most effective way to reduce a company’s total quality costs?

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Q: What does the target full product cost include?

A: Definition:   Target full product cost: The target cost is the maximum cost of a product that can…

Q: What is the differential cost to produce product Zeta?

A: Given information is: Cost of producing Alpha = $23 per unit Additional cost of producing Zeta = $25…

Q: What are the different purposes for which we measure product costs?

A: Product cost: Product cost is the cost incurred to manufacture a product, it includes the material…