The Basic Philosophy Behind ____________ Is to Economize on Inventory

question 90

Multiple Choice

The basic philosophy behind ____________ is to economize on inventory holding costs by having materials arrive at a manufacturing plant when needed to enter the production process?

• A) management by objectives
• B) reengineering
• C) just-in-time
• D) total quality management
• E) CAD/CAM

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Definitions:

Split-off

A point in a production process where multiple products are generated from a single input, each having its own identifiable market.

Joint Production Costs

Costs incurred during the process of producing multiple products simultaneously where the costs cannot be attributed to individual products easily.

Relative Sales Value Method

A method used to allocate joint costs based on the relative sales value of the products produced from the same process or operation.

Allocated

The distribution of resources, costs, or expenses to specific departments, projects, or cost centers according to a predetermined method.