26. The flow of goods through a JIT system is based on: a. a workstation efficiently completing its processing of a batch of units so that the units can proceed forward to the next workstation regardless of whether the next workstation is ready to receive them. b. processing goods in large batch sizes rather than less economical small batches. c. maintaining a stockpile of raw materials in anticipation of errors in production. d. producing to meet customer demand with no buildup of inventory at any point in the production process.

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27. A successful JIT system is based upon which of the following concepts? a. The company must rely upon a large number of suppliers to ensure frequent deliveries of small lots. b. The company should always choose those suppliers offering the lowest prices. c. The company should avoid long-term contracts with suppliers in order to exert pressure on suppliers to make prompt and frequent deliveries. d. A small number of supplier make frequent deliveries of specific quantities thus avoiding the buildup of large inventories of materials on hand.

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“28. Departmental overhead rates may not correctly assign overhead costs due to the use of direct labor hours in allocating overhead cost to products rather than machine time or quantity of materials used. b. the high correlation between direct labor-hours and the incurrence of overhead costs. c. over reliance on volume as a basis for allocating overhead costs where products differ regarding the number of units produced, lot size, or complexity of production. d. difficulties associated with identifying cost pools for the first stage of the allocation process.”

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