Which of the Following Is an Advantage of the Postponement

question 80

Multiple Choice

Which of the following is an advantage of the postponement technique?

• A) reduction in automation
• B) early customization of the product
• C) better quality of the product
• D) reduction in training costs
• E) reduction in inventory investment

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Definitions:

Acid-Test Ratio

A financial metric that assesses a company's ability to pay off its current liabilities with its most liquid assets, excluding inventory.

Days' Sales Uncollected

A financial metric that measures the average number of days it takes a company to collect payments after a sale has been made.

Average Accounts Receivable

The mean amount of money owed to a company by its customers over a specific period, indicating the efficiency of credit policies.

Net Sales

The revenue generated from sales transactions after deducting returns, allowances for damaged or missing goods, and discounts provided to customers.