Early Shipments to a Company Utilizing a JIT System Result

question 76

Multiple Choice

Early shipments to a company utilizing a JIT system result in

• A) stockouts for the company.
• B) back orders for the company.
• C) extra inventory for the company.
• D) decreased production costs for the company.

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Definitions:

Postage Expense

The cost incurred by a business for sending mail, packages, or parcels through the postal service or courier companies.

Petty Cash Fund

A small amount of cash on hand used for covering minor expenses, managed through a system of vouchers to maintain control.

Depositor's Bank Account

An account maintained by an individual at a bank in which they can deposit or withdraw funds.

Bank Fee

Charges imposed by banks for various services or as penalties for not meeting certain banking requirements.