Which of the following statements regarding work-in-process (WIP) inventory is FALSE?
A) Reducing flow time reduces WIP inventory.
B) During most of the time a product is "being made," it is in fact sitting idle.
C) Actual "run" time is usually a significant portion of the material flow time.
D) WIP exists because of flow time.
E) WIP inventory describes products or components that are no longer raw materials but have yet to become finished products.

Question

Quizplus · Accepted Answer

C is false because actual "run" time, which is the time when a product is actively being worked on, is typically a small portion of the total material flow time. Most of the flow time, products are waiting to be processed, moved, or inspected rather than being actively worked on.

Which of the Following Statements Regarding Work-In-Process (WIP) Inventory Is