A System in Which Inventory Items Arrive as They Are

question 2

Multiple Choice

A system in which inventory items arrive as they are needed in production instead of being stored in stock is known as

• A)flexible manufacturing systems.
• B)CAD.
• C)just- in- time (JIT).
• D)robotics.

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Definitions:

Average-Variable-Cost

The total variable cost divided by the quantity of output produced.

Marginal Costs

The investment required to manufacture an incremental unit of a product or service.

Variable Costs

Costs that change in proportion to the level of activity or production volume.

Fixed Costs

Costs that do not change with the level of output produced by the firm, such as rent, salaries, or loan repayments.