The Purpose of the Conversion Process Is to Transform Material

question 9

Multiple Choice

The purpose of the conversion process is to transform material, labor and overhead into a finished product.To accomplish that purpose, organizations can use one of three systems.Which of the following pairs includes examples of products that would use the same system?

• A)Decks of playing cards, compact discs
• B)Compact discs, made-to-order smoothies
• C)Decks of playing cards, made-to-order smoothies
• D)All of the pairs would use the same system.

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Definitions:

Just-In-Time (JIT)

A production strategy that strives to improve a business's return on investment by reducing in-process inventory and associated carrying costs.

Manufacturing Firms

Entities engaged in the industrial production of goods, transforming raw materials into finished products for distribution.

Demand-Pull

A production strategy where production is based on customer demand, pulling products through the manufacturing process to meet specific orders.

Downstream Workstations

Downstream workstations are the subsequent stages or positions in a workflow or production line where additional processing or assembly takes place, following upstream operations.