A JIT System Is Designed to Stretch Accounts Payable as Long

question 64

True/False

A JIT system is designed to stretch accounts payable as long as possible.

---

Definitions:

Variable Costs

Expenses that vary directly with the volume of production or sales.

CVP Graph

A Cost-Volume-Profit (CVP) graph visually represents the relationship between costs, volume of production, and profit.

Total Expense Line

Represents the aggregate of all expenses, both fixed and variable, incurred by a business during a specified accounting period.

Total Revenue Line

A financial metric showing the total income generated from ordinary activities before any expenses are subtracted.