Which of the Following Is True About Lean Thinking

question 177

Multiple Choice

Which of the following is true about lean thinking?

• A)Customer orders drive the production process.
• B)Inventory levels are maintained at high levels.
• C)Raw materials are purchased in large quantities.
• D)Finished goods are produced ahead of customers' orders to protect against running out of finished goods inventory.

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Definitions:

Coupon

A financial term referring to the annual interest payment received by a bondholder from the bond's issuer until it matures.

Weighted Average Cost

An inventory valuation method which assumes goods are used in the order in which they were purchased, often leading to a cost that is somewhere between the oldest and newest products.

Marginal Tax Rate

The tax rate that applies to each additional dollar of income earned; the percentage of tax paid on any additional income earned.

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity, which determines its financial leverage.