A Disadvantage of a JIT System Is That It

question 56

Multiple Choice

A disadvantage of a JIT system is that it

• A)increases inventory turnover.
• B)reduces inventory holding costs.
• C)ties up much capital in inventory.
• D)leaves no buffer stock in inventory.

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Definitions:

Telegraphic Language

A concise and efficient form of communication using short and simple phrases, often utilized in telegraphic messages or in contemporary texting and messaging.

Subordination

The process of ranking various ideas or elements in a written document or speech to show their relative importance.

Correspondence

The exchange of messages or documents between individuals or organizations, often through letters, emails, or other forms of communication.

Goodwill

is an intangible asset that arises when a company is acquired for more than the fair value of its net identifiable assets, reflecting the company’s reputation, brand, customer relationships, and other non-physical assets.