Which One of the Following Is an Advantage of Just-In-Time

question 144

Multiple Choice

Which one of the following is an advantage of just-in-time (JIT) systems?

• A) JIT systems reduce equipment needs by using larger lot sizes.
• B) JIT systems can be implemented in any production environment.
• C) JIT systems result in a decrease in safety stock and work-in-process inventory.
• D) JIT systems result in an increase in manufacturing lead times.

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Definitions:

Activity Rate

The predetermined rate used to allocate overhead costs to products or services based on a specific activity measure, such as machine-hours or labor-hours.

Labor-Related Activity

Activities or tasks that directly involve or are associated with the workforce's efforts in the production process or service delivery.

Traditional Costing Method

A costing method that allocates overhead costs to products based on a predetermined rate, usually associated with direct labor hours or machine hours.

Direct Labor-Hours

A measurement of the actual amount of production work done by employees, expressed in hours, not involving indirect labor.