otal quality management and just-in-time manufacturing focus on quality improvem

Question

otal quality management and just-in-time manufacturing focus on quality improvement as well as on time customer deliveries. True False s produced. The cost to heat a manufacturing facility can be directly linked to the number of unit True False 4. 5. As the volume increases, fixed cost per unit of output remains constant True False Cost-volume-profit analysis requires management to classify all costs as either fixed or variable with respect to production or sales volume within the relevant range of operations. True False 6. 7. A fixed cost: A. Requires the future outlay of cash and is relevant for future decision making. B. Does not change with changes in the volume of activity within the relevant range. C. Is directly traceable to a cost object D. Changes with changes in the volume of activity within the relevant range. E. Is irrelevant for cost-volume-profit and short-term decision making.

Explanation / Answer

3. True

4. True

5. False. The per unit fixed cost decreases with increase in the volume.

6. True

7. Answer is B.

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