Which of the Following Statements Regarding a Pull System Is

question 93

Multiple Choice

Which of the following statements regarding a pull system is true?

• A) Work is pulled to the downstream stations before it is actually needed.
• B) Manufacturing cycle time is increased.
• C) Problems become more obvious.
• D) Large lots are pulled from upstream stations.

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Definitions:

Payable

Refers to an amount of money that a company owes to its creditors or suppliers, to be paid at a later date.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered on credit.

Indirect Method

Indirect Method is a way of reporting cash flows from operating activities in the cash flow statement by starting with net income and adjusting for non-cash transactions and changes in working capital.

Operating Activities

Activities that involve the primary, day-to-day operations of a business, such as sales, supply chain management, and general administrative tasks.