Continuous Improvement Is a Philosophy That

question 97

Multiple Choice

Continuous improvement is a philosophy that:

• A) uses problem-solving techniques within work teams.
• B) ensures there are plenty of quality inspectors to find areas for improvement.
• C) waits until a big problem occurs, then systematically solves it.
• D) encourages the hiring of statistical process control specialists to reduce the need for current employees to learn statistical methods.

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Definitions:

Gross Profit Method

An inventory costing method to estimate the cost of goods sold and ending inventory, which calculates gross profit by subtracting the cost of goods sold from net sales.

FIFO Method

"First In, First Out," an inventory valuation method assuming that the first items purchased are the first ones sold, affecting the cost of goods sold and inventory value.

Cost Flow Method

An accounting technique used to value inventory and determine the cost of goods sold by assuming a flow of costs.

FOB Shipping Point

A shipping term indicating that the buyer takes responsibility for goods and their transportation costs as soon as the goods leave the seller's premises.