Which of the Following Correctly Describes Just-In-Time (JIT)Management

question 76

Multiple Choice

Which of the following correctly describes Just-in-Time (JIT) Management?

• A) It is a production approach that maintains surplus goods at each stage of manufacture.
• B) It helps managers cut costs by speeding the transformation of raw materials into finished products.
• C) It is a cost management approach that focuses on maintaining large finished goods inventory levels.
• D) It is an inventory approach that stockpiles raw materials to protect against supply interruptions.

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Definitions:

Depreciation Expense

The allocation of the cost of tangible assets over their useful lives, reflecting the decrease in value over time.

Factory Equipment

Assets used in the production process to manufacture goods, typically considered as fixed assets in accounting.

Costs of Goods Manufactured Schedule

A detailed accounting that shows the total production costs for a company over a specific period, including direct labor, materials, and overhead.

Period Cost

Period costs are expenses that are not directly tied to the production process and are expensed in the period they are incurred, such as administrative and selling expenses.