Which One of the Following Characteristics Would Likely Be Associated

question 32

Multiple Choice

Which one of the following characteristics would likely be associated with a just-in-time inventory method?

• A)ending inventory of work in process that would allow several production runs
• B)a backlog of inventory orders not yet shipped
• C)minimal finished goods inventory on hand
• D)an understanding with customers that they may come to the showroom and select from inventory on hand

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Definitions:

Average Total Cost

The total cost of production divided by the total quantity produced, representing the average cost per unit.

Long Run

A time period in economic analysis during which all factors of production and costs can be variable, allowing for full adjustment to changes in market conditions.

Variable Costs

Costs that vary directly with the level of production or output, such as materials and labor.

Fixed Costs

Costs that do not change with the level of output or sales, such as rent or salaries.