A Just-In-Time Inventory System Allows a Firm To

question 83

Multiple Choice

A just-in-time inventory system allows a firm to:

• A)reduce capital expenditures.
• B)reduce their investment in inventory.
• C)extend credit to new customers.
• D)provide sufficient inventory for most contingencies.

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Definitions:

Project

A planned set of interrelated tasks to be executed over a fixed period and within certain cost and other limitations.

Self-Liquidating Loans

Loans that are structured to be paid off through the cash flow generated by the project or asset they finance.

Interest Rates

The percentage of a sum of money charged for its use, indicating the cost of borrowing money or the return on invested savings.

Net Working Capital

A financial metric that measures a company's ability to pay off its current liabilities with its current assets.