In Order to Determine Product Costs, JIT Firms Are Usually

question 113

Multiple Choice

In order to determine product costs, JIT firms are usually structured so they can use:

• A)job-order costing
• B)process costing
• C)joint costing
• D)variable costing

---

Definitions:

Lead Time

The timeframe between the initiation and completion of a process, such as from placing an order to its delivery.

Re-Order Point

The inventory level at which an order should be placed to replenish stock before it runs out, based on lead time and consumption rate.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various prices at a given time.

Optimal Order Size

The quantity that minimizes the total cost of inventory, including holding and ordering costs.