A Method in Which Production of an Item Begins in Advance

question 158

Multiple Choice

A method in which production of an item begins in advance of customer needs is called:

• A) the andon method.
• B) the pull method.
• C) the jidoka method.
• D) the push method.

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Definitions:

Balance Sheet

A financial statement that shows a company's financial position, including assets, liabilities, and shareholders' equity at a specific point in time.

Income Statement

A financial statement that shows a company's revenues and expenses, leading to the net profit or loss over a specific period.

Acid-test Ratio

A stringent indicator that determines whether a firm has enough short-term assets to cover its immediate liabilities without selling inventory.

Current Ratio

A financial ratio indicating a firm's capacity to settle short-term debts due within a year, determined by dividing its current assets by its current liabilities.