A Company Using Just-In-Time (JIT) Methods Likely Would Show Approximately

question 59

Multiple Choice

A company using Just-in-Time (JIT) methods likely would show approximately the same net operating income under both absorption and variable costing because

• A)ending stock would be valued in the same manner for both methods under JIT.
• B)production is geared to sales under JIT and thus there would be little or no ending stock.
• C)under JIT fixed manufacturing overhead costs are charged to the period incurred rather than to the product produced.
• D)there is no distinction made under JIT between fixed and variable costs.

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Definitions:

Stock Price

Stock price is the cost of purchasing a share of a company's stock, reflecting the value the market attributes to the company.

Independent Variable

A factor that is intentionally changed to see its impact on an outcome variable in a study.

Dependent Variable

The variable in an experiment or study whose changes are determined by the presence or variation of one or more independent variables.

Mediating Variable

A type of variable in statistical analysis that explains the relationship between two other variables, often indicating the mechanism through which an effect occurs.