Match the descriptions that follow with the corresponding terms.
Descriptions:
1. Inventory system in which goods are manufactured or purchased just as they are needed for use.
2. A method of allocating overhead based on each product’s use of activities in making the product.
3. Systems that are especially important to firms adopting just in time inventory methods.
4. One part of the value chain for a manufacturing company.
5. The U.S. economy is trending toward this.
6. 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.
Terms:
(a) Activity based costing
(b) Balanced scorecard
(c) Total quality management (TQM)
(d) Research and development, and product design
(e) Service industries
(f) Just in time (JIT) inventory