One of the Major Advantages of a JIT System Is

question 80

Multiple Choice

One of the major advantages of a JIT system is that it

• A)helps identify sources of defects in outputs.
• B)ensures production lines have required inputs.
• C)lets organizations spot defective inputs quickly.
• D)eliminates inventory holding costs.

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Definitions:

Economic Profit

The difference between total revenue and total costs, including explicit and implicit costs.

Implicit Costs

The opportunity costs of using resources that a firm already owns to produce goods or services instead of earning money from these resources elsewhere.

Accounting Costs

Expenses recognized in a company's financial statements or accounts, representing outlays related to its operations and maintenance.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs.