A. The adoption of JIT normally requires which one of the following factors to increase:
(A) stock levels;
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(B) work-in-progress levels;
(C) batch sizes;
(D) quality standards.
B. In the practice of ABTs, a cost driver is:
(A) a reduction in unit cost without any loss of value;
(B) a factor that causes the total cost of an activity to change;
(C) the cost of converting raw materials into finished goods;
(D) a fee paid to the consultants who designed the ABT.
C. Functional analysis is:
(A) an approach to the construction of budgets around the functions within a business;
(B) an approach to the examination of the specified purpose of a product;
(C) the separation of the materials mixture variance into component parts;
(D) a method of appraising the performance of cost centres.
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