A _____ System Produces Finished-Goods Inventory in Advance of Customer

question 2

Multiple Choice

A _____ system produces finished-goods inventory in advance of customer demand using a forecast of sales.

• A) just-in-time
• B) push
• C) Kanban
• D) pull

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Definitions:

Straight Line Amortization

A technique for distributing the expense of an intangible asset consistently throughout its lifespan.

Equity Method

An accounting technique used to record an investor’s proportional share of an associate company’s profits or losses on its financial statements.

Fair Value Enterprise Method

An approach to valuing a business by estimating the present value of foreseeable future earnings and the net asset value.

Equity Method

An accounting technique used to record investments in which the investor has significant influence over the investee but does not have full control.