JIT Seeks to

question 16

Multiple Choice

JIT seeks to

• A)reduce production cost while increasing quality.
• B)radically redesign the production process for effectiveness.
• C)modify all non-value-added activities.
• D)all of the above.

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Definitions:

Accounts Receivable

The amount customers have yet to pay a company for products or services that have already been provided or utilized.

Notes Receivable

A customer’s written promise to pay an amount and possibly interest at an agreed-upon rate; amounts that customers owe for which a formal, written instrument of credit has been issued.

Direct Write-Off Method

A method of accounting for bad debts that involves charging unpaid accounts directly to the expense account when they are determined to be uncollectible.

Bad Debt Expense

The operating expense incurred because of the failure to collect receivables.