In a Just-In-Time Manufacturing System,reliable Vendor Relationships Are Essential Only

question 46

True/False

In a just-in-time manufacturing system,reliable vendor relationships are essential only if the prices they charge are the lowest possible prices.

---

Definitions:

Planning Budget

A budget created at the beginning of the budgeting period, reflecting the expected costs and revenues based on forecasted levels of activity.

Manufacturing Overhead

All indirect costs associated with manufacturing beyond direct materials and direct labor, such as utilities and rent for the manufacturing facility.

Administrative Expenses

Costs related to the general management and administration of a business, such as salaries of executive officers and costs of the legal department.

Net Operating Income

A financial metric that shows a company's profitability from its core business operations, excluding expenses and incomes from other sources.