Which of the Following Is a Method of Managing Purchasing,production,and

question 32

Multiple Choice

Which of the following is a method of managing purchasing,production,and sales,by which the firm attempts to produce each item only as needed for the next step in the production process?

• A)Flexible manufacturing practices
• B)Just-in-time inventory
• C)Theory of constraints
• D)Total quality management

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Definitions:

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and equipment leases, remaining constant regardless of how much a company produces.

Contribution Margin

The amount by which the sale of a product or service exceeds variable costs, indicating how much it contributes to covering fixed costs.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Marginal Costs

The additional cost incurred by producing one more unit of a good or service.