The Basic Foundation of the Toyota Production System and Just-In-Time

question 23

Multiple Choice

The basic foundation of the Toyota production system and just-in-time manufacturing includes all of the following elements EXCEPT

• A) simple but high-quality processes.
• B) lower inventory levels.
• C) smaller batches.
• D) longer product development times.

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Definitions:

Variable Costs

Expenses that change in proportion to the activity of a business, such as materials and labor costs.

Fixed Costs

Expenses that do not change with the level of goods or services produced over the short term, such as rent, salaries, and insurances.

Selling Price

The amount of money for which a product or service is sold to customers.

Variable Costs

Costs that vary directly with the level of production or service volume, such as materials and labor.