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Tanzania [10]
2 years ago
13

In the water and rocks analogy for JIT:

Business
1 answer:
maks197457 [2]2 years ago
3 0

Answer:

B) water represents inventory.

Explanation:

The Water and Rocks analogy can be regarded as an analogy that display a ship. The ship here symbolize a company/firm which is floating on water. The water is regarded as inventory. In a case whereby by the water level get down, the ship will hit the rock on the ground. So this analogy can allow to let defective material known. It should be noted that In the water and rocks analogy for JIT, water represents inventory.

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Annual contribution margin            $80,000

Annual fixed costs                           $160,000

Unavoidable fixed costs                 $90,000

Avoidable fixed costs                     $70,000

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