With Respect to Quantities, Which Characteristic of JIT Partnerships Would

question 1

Multiple Choice

With respect to quantities, which characteristic of JIT partnerships would be included of the following?

• A) suppliers ship based on their own production schedules
• B) short- term contracts to ensure flexibility
• C) a variable output rate
• D) supplier is packaging in standard quantities

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Definitions:

Cash Cycle

The period between the purchase of inventory and the collection of accounts receivable from the sale of that inventory.

Inventory Period

The typical duration required for a firm to convert its stock into revenue.

Accounts Receivable Turnover

A financial metric that measures how often a company collects its average accounts receivable balance in a period.

Accounts Payable Turnover

A financial ratio that measures the rate at which a company pays off its suppliers by dividing total purchases by average accounts payable for the period.