US CMA Part 1 · Chapter 4 · Question 20 of 22
Which statement best describes a just-in-time (JIT) production system?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Production is pulled by customer demand, with materials arriving as needed and inventories kept to a minimum
Explanation
JIT is a demand-pull system that aims to eliminate waste, including excess inventory, by producing and receiving materials only as they are needed. It relies on reliable suppliers, short setup times and high quality.
More Cost Management MCQs
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