A system in which companies purchase raw materials only when needed is called:
A)ABC.
B)external failure costs.
C)internal failure costs.
D)JIT production.

Question

Quizplus · Accepted Answer

JIT stands for "Just-in-time" production, which is a system in which companies purchase raw materials only when needed. This system helps to reduce waste and inventory costs while improving efficiency and productivity. ABC is a method for categorizing inventory items based on their value, while internal and external failure costs are associated with the costs of poor quality products.

A System in Which Companies Purchase Raw Materials Only When