A. The adoption of JIT normally requires which one of the following factors to increase:

(A) stock levels;

(B) work-in-progress levels;

(C) batch sizes;

(D) quality standards.

B. In the practice of ABTs, a cost driver is:

(A) a reduction in unit cost without any loss of value;

(B) a factor that causes the total cost of an activity to change;

(C) the cost of converting raw materials into finished goods;

(D) a fee paid to the consultants who designed the ABT.

C.  Functional analysis is:

(A) an approach to the construction of budgets around the functions within a business;

(B) an approach to the examination of the specified purpose of a product;

(C) the separation of the materials mixture variance into component parts;

(D) a method of appraising the performance of cost centres.