Which of the Following Statements Regarding JIT in Services Is

question 75

Multiple Choice

Which of the following statements regarding JIT in services is true?

• A) Restaurants do not use JIT layouts because they interfere with creation of a good servicescape.
• B) Excess customer demand in services such as air travel is met by dipping into safety stocks.
• C) All of the JIT techniques for dealing with suppliers, layout, inventory, and scheduling are used in services.
• D) Scheduling is not relevant to effective use of JIT in services.
• E) Stockbrokers keep a high level of inventory.

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Definitions:

Equivalent Unit

An equivalent unit is a concept used in cost accounting to denote the amount of work done on units of production expressed in terms of fully completed units, facilitating the calculation of costs in a process costing environment.

Fabricating Department

A division within a manufacturing company where raw materials are assembled or processed into finished goods.

FIFO Method

An inventory valuation method (First-In, First-Out) where the oldest items in inventory are sold or used first.

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, expressed in terms of full units of output.