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

question 105

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 is an inventory purchase approach that seeks purchase discounts on buying large quantities.
• C) It is a cost management approach that focuses on maintaining lean inventory levels.
• D) It is an inventory approach that stockpiles raw materials to protect against supply interruptions.

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Definitions:

Balance Sheet Impact

Represents the effect of transactions and events on the financial position of a business as shown in its balance sheet.

Perpetual FIFO

A perpetual inventory system that continuously updates inventory records, using the "First In, First Out" method to determine the cost of goods sold and inventory valuation.

Ending Inventory

The final value of goods available for sale at the end of an accounting period.

Cost Calculation

The process of determining the total cost incurred to produce goods or deliver services, factoring in both direct and indirect expenses.