JIT Makes Quality Cheaper Because

question 3

Multiple Choice

JIT makes quality cheaper because:

• A)the cost of low quality can be hidden as inventory cost.
• B)JIT adds more buffers to the system.
• C)JIT prevents long runs of defects.
• D)B and C
• E)A,B and C

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor.

Beginning Balances

The balances of accounts at the start of an accounting period, carried forward from the end of the previous period.

Accounts Receivable

The amount customers are yet to pay a company for goods or services that have already been delivered or performed.

Income Statement

A financial statement that reports a company's financial performance, including revenues, expenses, and profit, over a specific period.