XYZ Corp Is Focusing on the Objective of Low-Cost, High Quality

question 23

Multiple Choice

XYZ Corp. is focusing on the objective of low-cost, high quality, on-time production by minimizing idle productive facilities and workers. The XYZ Corp. is taking advantage of a __________ system.

• A)Last In, First Out (LIFO)
• B)Highly mechanized
• C)First In, First Out (FIFO)
• D)Just-In-Time (JIT)

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Definitions:

Accelerated Depreciation

A method of depreciation in which an asset loses book value at a faster rate than the traditional straight-line method.

Depreciation Expense

The portion of the cost of a tangible fixed asset allocated as an expense to a period, reflecting the usage and wear and tear of the asset.

Asset's Life

The expected duration of time that an asset is considered to be useful for the purposes of a business.

Total Asset Turnover

A financial ratio that measures a company’s efficiency in using its assets to generate sales or revenue.