JIT Is Applies to

question 94

Multiple Choice

JIT is applies to

• A) only the manufacturing organization
• B) only the service organization
• C) both the manufacturing and service organizations
• D) only the production portion of manufacturing and service organizations
• E) all of the organization except the marketing division

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Definitions:

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource, assuming other factors remain constant.

Wage Rate

The standard amount of compensation that employees receive in exchange for performing a specific task or job per time period.

Substitution Effect

The adjustment in purchasing behaviors as a result of variations in the comparative costs of products, prompting buyers to switch from one item to another that is either cheaper or more costly.

Output Effect

The impact on economic output and productivity resulting from a change in the level of economic activity.