1. Match the descriptions that follow with the corresponding terms.

Descriptions:

1. _______ All activities associated with providing a product or service.

2. _______ A method of allocating overhead based on each product’s use of activities in making the product.

3._______ Systems implemented to reduce defects in finished products with the goal of achieving zero defects.

4._______ A performance measurement approach that uses both financial and nonfinancial measures, tied to company objectives, to evaluate a company’s operations in an integrated fashion.

5._______ Inventory system in which goods are manufactured or purchased just as they are needed for use.

Terms:

a. Activity based costing

b. Balanced scorecard

c. Just in time (JIT) inventory

d. Total quality management

(TQM)

e. Value chain