In a just-in-time operating environment,the key measure of cost incurred is
A)machine hours.
B)push-through time.
C)throughput time.
D)indirect costs.

Question

Quizplus · Accepted Answer

In a just-in-time operating environment, the focus is on minimizing the amount of time it takes for a product or service to go from start to finish, known as throughput time. Therefore, the key measure of cost incurred would be the time it takes for the product or service to be completed, which is throughput time. Machine hours may be a relevant measure in traditional manufacturing environments, but it is not as useful in a JIT environment. Push-through time and indirect costs are not commonly used measures in JIT.

In a Just-In-Time Operating Environment,the Key Measure of Cost Incurred