Which of the Following Is Not a Typical Outcome of Implementing

question 85

Multiple Choice

Which of the following is not a typical outcome of implementing the just-in-time (JIT) system?

• A) Reduction of costs
• B) Lower defect rates
• C) Increased manufacturing flexibility
• D) Increased sales volume

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Definitions:

Accounting Profit

The net income reported on the financial statements, calculated as total revenues minus explicit costs.

Economic Profit

The difference between the total revenue generated by a business and the total costs, including both explicit and implicit costs.

Marginal Product

The additional output that is produced by adding one more unit of a particular input, holding all other inputs constant.