1.

Material left over when making a product is referred to as

Select one:

a. Reworked units

b. Spoilage

c. Defective units

d. Scrap

e. Indirect material

2.

Customer life-cycle costs:

Select one:

a. Are the replacement costs of using a product or service.

b. Focus on marketing costs.

c. Are the same as the selling life-cycle prices.

d. Are the costs to the customer of buying and using a product until it is replaced.

e. Are the costs the selling company incurs to satisfy the customer.

3.

Fixed cost allocation rates should be determined using

Select one:

a. Past production capacity

b. Long-term expected usage

c. Short-term average usage

d. Short-term expected usage

4.

________ refers to the average amount of time that an order will be in line before it is set up and processed.

Select one:

a. Average manufacturing cycle time

b. Average on-time performance

c. Average customer response time

d. Average waiting time

e. Average setup time (per cycle)