Just-In-Time (JIT) Production Systems

question 95

Multiple Choice

Just-in-time (JIT) production systems

• A) may lead to increased inventory obsolescence.
• B) have been widely used since the Great Depression of the 1930s.
• C) bring together all the needed materials and parts at the precise moment they are required for each production stage, not before.
• D) keep inventory levels high so deliveries to customers can be made just in time.
• E) increase the number of goods in process and save money by replacing stop-and-go production with smooth movement.

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Definitions:

Variable Cost

Variable cost is an expense that changes in proportion to production output or sales volume.

Managerial Accounting

Managerial accounting involves the provision of financial and non-financial information to an organization's management team to assist in decision-making and strategy planning.

Setting Goals

The process of identifying specific, measurable, achievable, relevant, and time-bound objectives that guide individuals or organizations.

Managerial Accounting Reports

Internal financial reports that provide managers with the necessary information to make informed business decisions, typically focused on future profitability and efficiency.