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1. Companies enjoy many benefits from using JIT. Which is not a benefit of adopting JIT?
a. Ability to respond quickly to changes in customer demand
b. Lower inventory carrying costs
c. Ability to continue production despite disruptions in deliveries of raw materials
d. More space available for production
2. Which account is not used in JIT costing?
a. Finished goods inventory
b. Raw and in-process inventory
c. Work in process inventory
d. Conversion costs
3. The cost of lost future sales after a customer finds a defect in a product is which type of quality cost?
a. Prevention cost
b. Appraisal cost
c. Internal failure cost
d. External failure cost
4. Spending on testing a product before shipment to customers is which type of quality cost?
a. External failure cost
b. Prevention cost
c. Appraisal cost
d. None of the above
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