- 1 Marks
Question
“Just-In-Time” works on a demand-pull basis and seeks to eliminate all waste and activities that do not add value. Which of the following activities adds value to a product?
A. Inspection time
B. Storage time
C. Processing time
D. Queuing time
E. Transport time
Answer
Answer: C. Processing time
Explanation: In a Just-In-Time (JIT) production system, value-adding activities are those that directly contribute to the transformation of raw materials into finished products. Processing time, which includes manufacturing or assembly, is a value-adding activity. Other activities like inspection, storage, queuing, and transport do not directly add value to the product but may be necessary under certain circumstances. JIT focuses on minimizing these non-value-adding activities to enhance efficiency.
- Topic: Costing Techniques
- Series: MAY 2024
- Uploader: Dotse