Buying of goods or materials for production in a way that they are delivered directly on the manufacturing facility of company is called ____________?
Correct answer: A. just in time purchasing
- A. just in time purchasing
- B. annual purchasing
- C. economic order quantity purchasing
- D. both a and b
Explanation
Just-in-time purchasing arranges for materials to arrive directly at the production facility when needed, reducing inventory held and storage. Economic order quantity is designed to balance ordering and carrying costs instead.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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More Cost Accounting questions
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