Jim Runs a Plant That Produces Cosmetics and Uses a Flexible

question 71

Multiple Choice

Jim runs a plant that produces cosmetics and uses a flexible manufacturing production process, while his brother Bill runs a plant that manufactures basic household appliances using a mass production system. The benefit Jim's plant has over Bill's plant is that Jim's plant ________.

• A)can produce products with slight variations
• B)produces goods according to individual customers' needs
• C)produces a large quantity of goods quickly
• D)is rigid and therefore significantly less expensive

---

Definitions:

Direct Write-Off Method

An accounting method where uncollectible accounts receivable are directly written off against income at the time they are determined to be uncollectible.

Allowance Method

An accounting technique used to estimate bad debts (uncollectible accounts receivable) and represent them in financial statements.

Industry Average

A benchmark or standard calculated by taking the average of a specific metric across multiple companies within the same industry, useful for comparative analysis.

Adjusting Entry

An accounting record made to update the balances of accounts at the end of an accounting period before the preparation of financial statements.