If a Casual-Dining Restaurant Is Attempting to Practice JIT and Lean

question 28

Multiple Choice

If a casual-dining restaurant is attempting to practice JIT and lean operations, which of the following would not be present?

• A) close relationship with the restaurant's suppliers of food, utensils, and equipment
• B) food preparation in large batches
• C) a kitchen set up to minimize wasteful movements
• D) lean inventories of food
• E) a system of continuous improvement

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Definitions:

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Inventory

The total amount of goods and materials held by a company intended for sale in the ordinary course of business.

Incremental Cash Flows

The additional cash inflows or outflows expected from a new project or investment, crucial for determining its net present value.

Capital Budgeting

The process of planning and managing a company's long-term investments in projects and assets, to maximize returns and shareholder value.