The Purpose of JIT (Just-In-Time)production Is To

question 6

Multiple Choice

The purpose of JIT (just-in-time) production is to:

• A)sell more goods over time.
• B)enhance product quality.
• C)prevent errors in production.
• D)keep inventories at a minimum.

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Definitions:

Assets

Resources owned by a person or business that have economic value and can provide future benefits.

Inventory Turnover Ratio

Indicates how many times a company's inventory is sold and replaced over a certain period, calculated by dividing cost of goods sold by average inventory.

Inventories

Raw materials, work-in-process products, and completely finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.

Operating Costs

Expenses associated with the day-to-day functions of running a business, excluding capital expenditures.