Answer (B) is correct . To implement a just-in-time (JIT) approach to inventory management and to eliminate waste of materials, labor, factory space, and machine usage, the factory is reorganized to permit what is often called lean production. Plant layout in a JIT-lean production environment is not arranged by functional department or process but by manufacturing cells (work cells). Central support departments are reduced or eliminated, space is saved, fewer and smaller factories may be required, and materials and tools are brought close to the point of use.
Answer (A) is incorrect because Kaizen is a Japanese word meaning continuous pursuit of improvement in every aspect of organizational operations.
Answer (C) is incorrect because Activity-based management is the linkage of product costing and continuous improvement of processes. It redirects and improves the use of resources to increase the value created for customers and other stakeholders.
Answer (D) is incorrect because Backflush costing is utilized with just-in-time production as a planning and control system. Backflush costing is less costly to operate than most traditional costing systems.
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