Lean Enterprises Rely on the Push System,whereby Company Supply Drives

question 38

True/False

Lean enterprises rely on the push system,whereby company supply drives the production process.

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Definitions:

Sales on Account

Transactions where goods are sold and delivered with the understanding that payment will be made at a later date.

Average Collection Period

The average number of days it takes for a business to receive payments from its customers for invoices issued.

Accounts Receivable

Amounts owed to a company by customers for goods or services that have been delivered or sold but not yet paid for.

Sales on Account

Transactions where goods or services are sold with the understanding that payment will be made at a later date.