What Is the Japanese Inventory System That Minimizes Inventory Costs

question 15

Multiple Choice

What is the Japanese inventory system that minimizes inventory costs and provides those inputs as they are needed for a particular production run?

• A) perpetual inventory
• B) raw materials coordination
• C) just-in-time
• D) controlled assembly

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Definitions:

Cost Of Goods Sold

The direct costs tied to the production of products sold by a company, including materials and labor.

Merchandise Inventory

Merchandise Inventory includes goods that are purchased and held for resale by a retail or wholesale business, representing one of the primary sources of revenue.

FIFO

An inventory valuation method where the first items purchased or produced are the first ones sold, impacting the cost of goods sold and inventory valuation.

LIFO

Last In, First Out, an inventory valuation method where the most recently produced or acquired items are the first to be expensed.