Lean Manufacturing Shares Many of the Same Methodologies as

question 69

Multiple Choice

Lean manufacturing shares many of the same methodologies as

• A) activity-based management.
• B) JIT manufacturing.
• C) process costing.
• D) none of these.

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Definitions:

ACP

Average Collection Period, indicating the average number of days it takes for a company to receive payments from its customers.

Credit Policy

A set of guidelines a company follows to determine credit terms for customers, including who is granted credit and the terms of payment.

Credit Sales

Transactions where goods or services are sold to a customer with the agreement that payment will be made at a later date.

Zero Balance Accounts

Bank accounts that maintain a balance of zero by automatically transferring funds to cover charges or replenishing from another account.