According to the Just-In-Time Philosophy

question 131

Multiple Choice

According to the just-in-time philosophy,

• A)maintaining inventories wastes resources and frequently covers up poor work or other problems.
• B)push-through manufacturing flows are the most efficient.
• C)inventories of finished goods should always be available to meet customer demand.
• D)long production runs and large production lot sizes take advantage of economies of scale.

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Definitions:

Materials Price Variance

The difference between the actual cost of materials used in production and the standard cost of those materials as budgeted.

Variance Reports

Reports that compare actual financial performance with budgeted or planned performance, highlighting deviations and areas requiring attention.

Significant Variances

Large or important differences between planned and actual figures in a budget or financial statement, often requiring further investigation.

Customer Perspective

An aspect of business strategy that focuses on understanding and meeting the current and future needs of customers.