Which of the Following Is NOT a Benefit of a Just-In-Time

question 3

Multiple Choice

Which of the following is NOT a benefit of a just-in-time (JIT) system?

• A)Areas previously used to store inventories are made available for other more productive uses.
• B)Funds that have been tied up in inventories can be used elsewhere.
• C)The time required to fill an order is reduced, resulting in quicker response to customers and consequentially greater potential sales.
• D)Production workers are always busy.

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Definitions:

Financial Advantage

A benefit gained in terms of financial health, growth, or savings that gives a business or individual a competitive edge.

Operating Results

The outcomes or the financial performance of a business's operations, often presented in the form of income statements displaying revenues, expenses, and net profits or losses.

Contribution Margin

The margin created by subtracting variable costs from sales revenue, which is utilized to pay for fixed expenses and create profit.

Fixed Costs

Expenses that do not change with the level of production or sales over a certain period, such as rent, salaries, and insurance.