Which of the Following Statements About the Just-In-Time (JIT)system Is

question 71

Multiple Choice

Which of the following statements about the just-in-time (JIT) system is true?

• A)The JIT system is used in situations where inventory will be stored over significant periods of time.
• B)The JIT system raises inventory costs.
• C)The JIT system is used in situations where demand and forecasting are reliable.
• D)When using the JIT system, a firm should protect itself against uncertainty by maintaining a reserve inventory at production and stocking points.

Recognize the implications of underutilizing productive capacity on costs.

Comprehend the relationship between activity levels and total budgeted overhead costs.

Understand the factors causing variances in standard costing, including variable overhead efficiency and fixed overhead volume variances.

Interpret overhead cost performance reports and understand their components.

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Definitions:

Formalization

Formalization refers to the process of defining and instituting formal rules, procedures, and structures within an organization to standardize operations.

Coordination

The act of organizing or aligning activities, tasks, or individuals to operate efficiently towards a common goal.

Advocate

A person who publicly supports or recommends a particular cause or policy, or acts in the defense or support of others.

Solutions

answers or means for effectively dealing with a problem or challenge.