What Is the Japanese Inventory System That Minimizes Inventory Costs

question 15

Multiple Choice

What is the Japanese inventory system that minimizes inventory costs and provides those inputs as they are needed for a particular production run?

• A) perpetual inventory
• B) raw materials coordination
• C) just-in-time
• D) controlled assembly

---

Definitions:

Probable Future Economic Benefits

The anticipated economic advantages expected to be received in the future as a result of owning or using an asset.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of the firm's financial condition.

Entity's Profitability

A measure of how effectively a company generates profit from its operations, often evaluated through margins and return ratios.

Common Stock Account

An equity item on the balance sheet representing funds raised by issuing common shares.