Just-In-Time Is

question 42

Multiple Choice

Just-in-time is

• A)a method of managing production by which the firm attempts to produce each item only as needed for the next step in the production process.
• B)a method of managing purchasing by which the firm attempts to time purchases so that items arrive just in time for sale.
• C)a practice that can reduce inventory levels to virtually zero.
• D)All of the answers are correct.

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Definitions:

Gross Investment

The total amount invested in the purchase of new capital assets plus replacement of depreciated assets, reflecting the total expenditure on new capital in an economy.

Depreciation

The process of allocating the cost of a tangible asset over its useful life, reflecting the decrease in value over time due to wear and tear or obsolescence.

Net Investment

The overall sum invested by a company or an economy in capital assets, with depreciation deducted.

Depreciation

Depreciation is an accounting method of allocating the cost of a tangible or physical asset over its useful life, representing how much of the asset's value has been used up.