Many JIT Implementations in the U

question 53

True/False

Many JIT implementations in the U.S. actually increased inventory costs because JIT is based on the assumption that warehousing costs are extremely high, as they were in Japan where JIT was initiated by Toyota.

---

Definitions:

Direct Labor-Hours

Direct labor-hours refer to the total hours worked by employees directly involved in producing a product.

Spending Variance

The difference between the budgeted amount of spending and the actual amount spent.

Actual Cost

The real, total expenses incurred for a project or production, including all direct and indirect costs.

Plane Operating Costs

The expenses associated with the operation of an aircraft, including fuel, maintenance, crew salaries, and depreciation.