According to JIT Philosophy

question 54

Multiple Choice

According to JIT philosophy,

• A)inventories of finished goods always should be available to meet customer demand.
• B)push-through manufacturing flows are the most efficient.
• C)maintaining inventories wastes resources and frequently covers up poor work or other problems.
• D)long production runs and large production lot sizes take advantage of economies of scale.

Distinguish between different sections of costs in a production cost report.

Compute physical units and equivalent units for materials and conversion costs.

Determine unit costs for materials, conversion costs, and total manufacturing costs.

Prepare journal entries for transactions in process cost accounting.

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Definitions:

Net Cash

The amount of cash available after accounting for all cash inflows and outflows within a specific period.

Investing Activities

Financial actions related to the acquisition or sale of assets, such as securities and property, aimed at generating income or appreciation.

Net Cash

The distinction between a business's overall cash receipts and disbursements.

Financing Activities

Activities that result in changes in the size and composition of the equity capital or borrowings of the entity.