A Cost Management System in Which a Company Produces Just

question 77

True/False

A cost management system in which a company produces just in time to satisfy customer needs is known as just-in-time management.

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Definitions:

Book Value

The value of an asset as recorded on a company's balance sheet, calculated as the cost of an asset minus accumulated depreciation.

Variable Operating Costs

Costs that fluctuate with the level of production or sales volume, such as materials and labor.

Labor Hour

A measurement of work output or productivity calculated as the amount of labor input in terms of hours expended.

Time and Materials Pricing

A pricing strategy where the customer pays for the time spent on a project and the materials used, commonly used in service and contracting industries.