When a Firm Changes to a JIT Operating and Management

question 39

Multiple Choice

When a firm changes to a JIT operating and management philosophy,

• A) it attempts to increase the number of suppliers it has for each item it uses to ensure a reliable flow of materials into the production process.
• B) it seeks out the lowest-cost bidder for supplies in order to minimize costs.
• C) it works more closely with fewer suppliers.
• D) all of these are correct.

Understand adjustments necessary for inventory valuation differences at acquisition.

Calculate and account for goodwill and its impairment.

Determine the acquisition differential and its allocation to various assets and liabilities.

Calculate consolidated retained earnings and recognize the impact of dividends.

---

Definitions:

Employer's Contribution

A payment made by an employer into a fund, pension plan, or insurance for the benefit of the employee.

Pension Expense

The annual cost recognized by an employer for its pension plan, which includes service costs, interest costs, expected returns on plan assets, and gains or losses.

Mortality Rate

Mortality rate, often expressed per thousand or per hundred thousand, refers to the frequency of deaths in a given population during a specific period of time.

Unrecognized Net Gain Or Loss

Refers to gains or losses that have been incurred but are not reported in the financial statements because they are unrealized.