Companies That Use a Just-In-Time (JIT)production System

question 26

Multiple Choice

Companies that use a just-in-time (JIT) production system:

• A)ensure that their finished products are completed just in time to fill customers' orders.
• B)have higher inventory costs because of additional handling costs charged by suppliers to expedite materials.
• C)have frequent contact with their suppliers.
• D)set up their assembly lines just-in-time to meet customer demand.

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Definitions:

Supplies Expense

Costs associated with consumable items or supplies used in the operation of a business during a specific period.

Accrued Expense

Expenses that have been incurred but not yet paid, recognized in accounting even if no cash has been exchanged.

Property Taxes

Taxes levied by local governments on real estate owned by individuals and businesses based on the assessed value of the property.

Annual

Relating to a period of one year.