In Which Type of Inventory System Do the Parts Arrive

question 32

Multiple Choice

In which type of inventory system do the parts arrive at the stage of the production process just when they are needed?

• A) Raw materials system
• B) Work-in-process system
• C) Finished goods system
• D) JIT system
• E) Goods for resale system

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Definitions:

Marginal Cost

The supplementary cost associated with making an additional unit of a product or service.

Marginal Revenue

The additional income received from selling one more unit of a good or service; it is an important concept in determining optimal output levels.

Break-Even Point

The point at which total costs and total revenue are equal, resulting in no net loss or gain.

Output

The total amount of goods and services produced by an economy, company, or industry within a specific period.