To Protect Its Conversion Process, an Organization That Uses Traditional

question 22

Multiple Choice

To protect its conversion process, an organization that uses traditional mass production technology:

• A) establishes a new venture.
• B) may pursue a vertical integration strategy.
• C) uses a JIT inventory system.
• D) uses CIM.

---

Definitions:

Plant, Property

Plant, Property, often followed by and Equipment (PP&E), represents long-term assets owned by a company, used in its operations.

Equipment

Tangible assets used in operations, such as machinery or office equipment, not intended for sale.

Land

A real estate asset representing a parcel of earth's surface, its resources, and all its permanent fixtures.

Net Sales

Total sales revenue minus returns, discounts, and allowances for goods that are damaged or missing, defining a company's net sales.