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(TCO 11) Which of the following is NOT one of the steps in
managingbottlenecks under the theory of constraints?
4. Question :
(TCO 11)Scrap is an example of
5. Question :
(TCO 11) Regal Products has a budget of $900,000 in 20X6 for
prevention costs. If it decides to automate a portion of its prevention
activities, it will save $60,000 in variable costs. The new method will
require $18,000 in training costs and $120,000 in annual equipment
costs. Management iswilling to adjust the budget for an amount up to
the cost of the new equipment. The budgeted production level is
150,000 units. Appraisal costs for the year are budgeted at $600,000.
The new prevention procedures will save appraisal costs of $30,000.
Internal failure costs average $15 per failed unit of finished goods.
The internal failure rate is expected to be 3%of all completed items.
The proposed changes will cut the internal failure rate by one-third.
Internal failure units are destroyed. External failure costs average $54
per failed unit. The company's average external failuresaverage 3% of
units sold. The new proposal will reduce this rate by 50%. Assume all
units produced are sold and there are no ending inventories. How
much will appraisal costs change assuming the new prevention
methods reduce material failures by 40% in the appraisal phase?
6. Question :
(TCO 12) Which of the following is NOT a major feature of a just-intimeproduction system?
7. Question :
(TCO 12)Quality costs include
8. Question :