Which of the Following Statements Regarding a Pull System Is

question 32

Multiple Choice

Which of the following statements regarding a pull system is TRUE?

• A) Large lots are pulled from upstream stations.
• B) Work is pulled to the downstream stations before it is actually needed.
• C) Manufacturing cycle time is increased.
• D) Problems become more obvious.
• E) None of these is true of a pull system.

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Definitions:

Allowance for Doubtful Accounts

An estimate of the receivables that may not be collected, reducing gross receivables to a more realistic net value.

Uncollectible Receivables

Accounts receivable that a company has determined are unlikely to be collected and thus are written off as a bad debt expense.

Bad Debt Expense

An expense reported on the income statement, reflecting the cost of debts that are deemed uncollectible.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the amount of accounts receivable that may not be collectible.