All of the Following Are Considered Advantages of a Just-In-Time

question 65

Multiple Choice

All of the following are considered advantages of a just-in-time inventory system, except:

• A) Reduced raw material storage costs
• B) Minimized idle production facilities and workers
• C) Reduced work-in-process inventories
• D) Reduced dependence on suppliers

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Definitions:

Cash Dividends

Distributions of a company's earnings to shareholders in the form of cash.

Selling and Administrative Expenses

Costs related to the day-to-day operations of a business, excluding manufacturing expenses.

Internal Rate of Growth

The maximum rate at which a firm can grow its sales and revenue without needing to increase external financing, relying solely on its own profits.

Assets

Resources owned by a company or individual that have economic value and can be used to meet debts, commitments, or legacies.