JIT Is Applies to

question 94

Multiple Choice

JIT is applies to

• A) only the manufacturing organization
• B) only the service organization
• C) both the manufacturing and service organizations
• D) only the production portion of manufacturing and service organizations
• E) all of the organization except the marketing division

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Definitions:

Salvage Value

The forecasted sale price for an asset at the termination of its usability period.

MACRS Depreciation

Modified Accelerated Cost Recovery System; a method of depreciation used for tax purposes in the United States that allows for faster expense deductions.

Working Capital

The difference between a company’s current assets and current liabilities, used to fund the company's day-to-day operations.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, indicating the percentage of tax applied to your next dollar of income.