Which of the Following BEST Describes Just-In-Time Inventory Management

question 138

Multiple Choice

Which of the following BEST describes just-in-time inventory management?

• A) Production system that stores surplus goods at each stage of manufacture
• B) Inventory purchasing process that gains purchase discounts by buying in large quantities
• C) Production system that focuses on delivering materials and goods in exactly the right quantity when needed
• D) Inventory system which stockpiles raw materials to protect against supply interruptions

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Definitions:

Placed in Service

Refers to the point in time when an asset begins to be used by a business for its intended purpose, marking the start of depreciation.

Asset

Items of value owned by a company, including tangible and intangible resources, that can be converted into cash.

Second-Year Depreciation

The depreciation expense allocated in the second year of an asset's useful life, considering the chosen depreciation method.

Straight-Line Method

A depreciation method applying an equal expense rate each year over the useful life of the property.