Which term listed below describes a system where companies purchase raw materials when needed in production and complete finished goods when needed by customers?
A)Internal failure costs
B)Backflush costing
C)Just-in-time
D)External failure costs

Question

Quizplus · Accepted Answer

Just-in-time is a system in which companies purchase raw materials as and when needed in production and complete finished goods as and when needed by customers, thereby minimizing inventory costs and improving efficiency. Options A and D refer to costs associated with quality control and product defects, while option B refers to a costing method used to allocate costs to production.

Which Term Listed Below Describes a System Where Companies Purchase