In a Just-In-Time (JIT) Environment, Process Problems Are More Visible

question 52

True/False

In a just-in-time (JIT) environment, process problems are more visible than they are in a traditional environment.

---

Definitions:

Sale of Equipment

The process of disposing of business equipment, which is recorded as a financial transaction affecting company assets.

Cash Flows

The inflows and outflows of cash and cash equivalents for a business, reflecting its operational, investing, and financing activities.

Operating Activities

Activities directly related to the running of a business for profit, including production, sales, and day-to-day operations.

Direct Method

A cash flow forecasting technique that itemizes and records actual cash inflows and outflows, rather than using an indirect calculation.