1 - In a just-in-time (JIT) environment, process problems are more visible than they are in a traditional environment because:

A - inventories are maintained at higher levels.

B - process problems cause production to shut down immediately.

C - the push manufacturing system leads to increased inventory level.

D - the lack of work in process inventory creates problems.

2 -

1. Schedule of Activity Costs

   Quality Control Activities	Activity Cost
   Process audits	$50,000
   Training of machine operators	27,000
   Processing returned products	18,000
   Scrap processing (disposal)	24,000
   Rework	8,000
   Preventative maintenance	30,000
   Product design	46,000
   Warranty work	12,000
   Finished goods inspection	22,000

   From the above schedule of activity costs, determine the total activity cost
2. $62,000

   $175,000

   $103,000

   $237,000

3 -

Which of the following is characteristic of a just-in-time (JIT) production layout?

A - Decentralized maintenance

B - Small production batches

C - Organization around processes

D - Both A and B