Which of the Following Statements Is True of Just-In-Time Production

question 101

Multiple Choice

Which of the following statements is true of just-in-time production systems?

• A) In a just-in-time production system, a master production schedule specifies the quantity and timing of each item to be produced.
• B) Sales budget triggers each step of the production process in a just in time production system.
• C) Defects arising at one workstation affect other workstations in the line quickly because of the tight links between workstations.
• D) Production is organized in manufacturing cells in a just in time production system, which are production centers that use a "push-through" approach whereby finished goods are manufactured on the basis of demand forecasts.

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Definitions:

Sales Volume

The total quantity of products or services sold within a specific period.

Break-Even Point

The financial point at which total revenues equal total costs, resulting in no net profit or loss.

Contribution Format

A way of presenting income statements where costs are divided into variable and fixed categories, highlighting the contribution margin.

Income Statement

A financial statement that shows a company's revenues, expenses, and profitability over a specified period of time.