Which of the Following Represents a Reason Management Would Use

question 15

Multiple Choice

Which of the following represents a reason management would use JIT methods?

• A)To keep large amounts of materials on hand for production.
• B)To provide finished goods just in time for sale.
• C)To hide defective units.
• D)To prevent laying off workers during slow times.

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Definitions:

Direct Method

A cash flow statement reporting approach that lists major outgoing payments and incoming receipts during a period.

Operating Activities

Activities directly related to the primary business operations of a company, including the production, distribution, and sale of goods and services.

Net Income

The total profit of a company after all revenues, expenses, taxes, and dividends have been deducted.

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's profits.