Companies Using the Just-In-Time (JIT)approach Hope to Achieve

question 14

Multiple Choice

Companies using the just-in-time (JIT) approach hope to achieve:

• A)reduction of costs associated with setup by producing in large batches.
• B)reduced defect rates, resulting in less waste and greater customer satisfaction.
• C)gains in production flexibility.
• D)the hiring of specialized workers to increase production.

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Definitions:

Cost Of Goods Sold

Costs pertaining directly to the crafting of goods a business sells, covering both labor and material expenses.

Perpetual Inventory System

An accounting method that records the sale or purchase of inventory immediately through the use of technology, ensuring continuous updating of inventory and cost of goods sold data.

Freight Costs

Expenses incurred by a company to ship its products to customers, usually varying based on distance and weight.

Inventory Account

An accounting record that tracks the cost of goods available for sale or used in production.