The JIT Operating Philosophy Must Be Adopted by Everyone in a Company

question 113

True/False

The JIT operating philosophy must be adopted by everyone in a company before its total benefits can be realized.

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Definitions:

Variable Costs

Expenses that change in direct proportion to the amount of production or output.

Total Cost

The sum of all costs incurred by a business in the production of goods or services, including fixed and variable costs.

Prospective Sales

Forecasted or anticipated sales based on current trends, marketing strategies, and economic conditions.

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, as the cost per unit of output decreases with increasing scale.