In a Just-In-Time Inventory System

question 74

Multiple Choice

In a just-in-time inventory system,

• A)practical standards become ideal standards.
• B)ideal standards become expected standards.
• C)variances will not occur because of the zero-defects basis of JIT.
• D)standard costing cannot be used.

---

Definitions:

Sales Budget

An estimate of future sales, often broken down by product lines or geographic areas, used for planning and guiding sales efforts.

Cash Disbursements

The outflow of cash for business expenses, acquisitions, or investments, documented within a specific period.

Raw Material Purchases

The acquisition of the basic substances or components that are used in the manufacturing process to produce finished goods.

Budgeted Sales

The forecasted sales for a specific period, serving as a key component of financial and operational planning.