Successful Implementation of a JIT Production System and Effective Accomplishments

question 12

True/False

Successful implementation of a JIT production system and effective accomplishments of its goals should result in a decrease in the inventory turnover ratio and a decrease in the number of days of inventory on hand.

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Definitions:

Residual Value

The projected amount an asset is expected to yield when sold at the conclusion of its useful life.

Double-Declining-Balance

An accelerated method of depreciation where an asset’s book value is reduced at double the rate of its straight-line depreciation.

Units-Of-Activity

A depreciation method that allocates the cost of an asset over its useful life based on its usage or activity levels, rather than time.

Depreciation Expense

Depreciation expense is the allocated portion of the cost of a tangible asset that is expensed over its useful life, reflecting wear and tear, obsolescence, or loss of value.