Which of the Following Statements Contradicts the Philosophy Underlying the Just-In-Time

question 128

Multiple Choice

Which of the following statements contradicts the philosophy underlying the just-in-time operating environment?

• A)The work force must become multiskilled in order to operate different machines and perform other tasks in the work cell.
• B)A customer order triggers the purchase of materials and the activation of the production process.
• C)Large inventories are maintained in order to fulfill customer orders on a timely basis.
• D)Flexible work cells are created to increase productivity.

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Definitions:

Working Paper

Documents that record the detailed information and procedures used in an audit or financial analysis, serving as the basis for conclusions.

End-Of-Period Spreadsheet

A document used to gather all account balances at the end of an accounting period to prepare financial statements.

Prepaid Insurance

An asset account that represents insurance payments made in advance for coverage extending over future periods.

Unearned Revenue

Funds paid to a company for products or services that are still to be provided or executed.