A Company That Uses a Just-In-Time Inventory System

question 123

Multiple Choice

A company that uses a just-in-time inventory system:

• A) has finished goods inventory on hand at all times in order to speed up shipments of customer orders.
• B) may find that having less inventory actually leads to increased customer satisfaction.
• C) assesses its value chain to create new value-added activities.
• D) adopts a systematic, problem-solving attitude.

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Definitions:

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted, indicating how much contributes to the fixed costs and profits.

Scatter Diagram

A graph used in statistics to visually display and assess the possible relationship between two numerical variables.

Visual Line Fit

A method in statistical analysis where a line is visually fitted to a set of data points to assess a potential relationship.

Scatter Diagrams

are graphical representations used in statistics to show the relationship between two variables, displaying data points on a two-dimensional plot.