Which of the Following Statements Regarding JIT in Services Is

question 75

Multiple Choice

Which of the following statements regarding JIT in services is true?

• A) Restaurants do not use JIT layouts because they interfere with creation of a good servicescape.
• B) Excess customer demand in services such as air travel is met by dipping into safety stocks.
• C) All of the JIT techniques for dealing with suppliers, layout, inventory, and scheduling are used in services.
• D) Scheduling is not relevant to effective use of JIT in services.
• E) Stockbrokers keep a high level of inventory.

---

Definitions:

Net Operating Income

The company's profit remaining after operating costs are removed, but prior to the deduction of taxes and interest.

Fixed Manufacturing Overhead

Fixed manufacturing overhead includes the costs associated with manufacturing that do not vary with the level of production, such as rent, salaries, and utility costs.

Ending Inventory

The total value of all the merchandise, raw materials, work in process, and finished goods that a company has at the end of its fiscal period.

Segmented Income Statement

An income statement that breaks down revenues, expenses, and profits by individual segments, departments, or product lines of a business.