A Supplier to a Company Using JIT II

question 152

Multiple Choice

A supplier to a company using JIT II

• A) will incur increased invoicing and payment costs but will get higher prices.
• B) will be able to sell directly to the engineering department of the customer.
• C) must be very flexible to incur the dramatic swings in requirements from the customer.
• D) enjoys a savings in personnel costs because the in-plant representative is employed by the customer.

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Definitions:

Balance Sheet

is a financial statement that provides a snapshot of a company's financial position at a specific point in time, detailing assets, liabilities, and shareholders' equity.

Unadjusted Trial Balance

A trial balance prepared at the end of an accounting period before adjusting entries are made.

Account Title

The name given to an account that reflects the type of transaction it represents, used in accounting to classify and record financial transactions.

Retained Earnings Statement

A financial statement that summarizes the amounts retained or reinvested in the company from net income (or profit) after dividends are paid.