Which Area(s)of a Business Can Be Improved by Using a Just-In-Time

question 4

Multiple Choice

Which area(s) of a business can be improved by using a just-in-time (JIT) system?

• A)Production,purchasing,and delivery.
• B)Production only.
• C)Purchasing only.
• D)Production and purchasing only.
• E)A just-in-time system can be used to improve any area of a business.

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Definitions:

Opportunity Cost

The value of the best alternative that is forgone when a particular decision is made, representing the benefits that could have been received from that alternative.

Transfer Price

The price charged when one responsibility center within a company provides goods or services to another responsibility center in the same company.

Return On Investment

A measure used to evaluate the efficiency of an investment or compare the efficiency of several different investments, calculated by dividing the benefit (return) of an investment by the cost of the investment.

Performance Measure

Indicators used to evaluate the efficiency, effectiveness, or success of an organization or individual in achieving objectives.