William is the owner of a made-to-order furniture shop. He maintains extensive catalogues of the designs and customizations that he offers. Once a customer places an order, William buys the required amount of raw materials from his regular suppliers and starts working on the order. From the given scenario, it can be inferred that William follows the _____.
A. push system of inventory control
B. mass production system
C. just-in-time production system
D. flow production system
Answer: C
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The materiality of an item of financial information refers to the likelihood that its omission or misstatement would affect the decisions of those relying on that information and thus make differing choices if the information had been presented. This concept most closely relates to the
A) financial magnitude of the item B) verifiability of the item C) neutrality of the item D) confirmatory value of the item
Under the UCC, if the time, place, and manner of delivery of goods are not mentioned in a contract, ________.
A. the place of delivery is the buyer's place of business B. the contract is void for lack of definiteness C. the place of delivery is the seller's place of business D. the seller is obligated to pay for shipping to the buyer's place of business
An example of a pricing objective is to
A) have prices that top the market. B) maintain or gain market share. C) maximize losses. D) minimize quality and cost.
If the cost of direct materials is a small portion of total production cost, it may be classified as part of:
A) direct labor cost B) selling and administrative costs C) miscellaneous costs D) factory overhead cost