It Is True That Just-In-Time (JIT) Processing

question 16

Multiple Choice

It is true that Just-in-time (JIT) processing:

• A) runs the risk of interruptions in supply.
• B) is only suitable for large businesses.
• C) reflects a 'push' approach to manufacturing.
• D) sounds good in theory but doesn't work in practice.

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Definitions:

Total Cost

Total Cost is the sum of all costs, fixed and variable, incurred in the production of goods or the delivery of services.

Daily Profit

The financial gain or loss a business makes in a single day, calculated by subtracting total daily expenses from total daily revenue.

Marginal Revenue

The extra revenue generated by the sale of an additional unit of a product or service.

Profit-maximizing

The process or strategy by which a firm determines the price and output level that returns the greatest profit.