Which Statement Best Describes a Company That Uses the Just-In-Time

question 69

Multiple Choice

Which statement best describes a company that uses the just-in-time inventory system?

• A) It uses a two-bin inventory system.
• B) It attempts to earn speculative profits on inventory.
• C) It cuts inventory to the minimum.
• D) It calculates the economic order quantity for each type of item.

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Definitions:

Unearned Subscriptions

Income received in advance for subscriptions that have not yet been fulfilled. This is recognized as a liability until the service is rendered.

Subscription Revenue

Income generated from customers who pay a recurring price at regular intervals for access to a product or service.

Interest Accrue

The accumulation of interest expenses or revenues that have been incurred but not yet paid or received in cash.

Note Payment

The process of repaying the principal and/or interest on a promissory note or loan.