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 nonfi nancial 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