JIT Purchasing Is Done Using

question 14

Multiple Choice

JIT purchasing is done using

• A)short-term contracts that emphasize price.
• B)long-term contracts based on quality, reliability, and price.
• C)short-term contracts based on quality, reliability, and price.
• D)inventory to hedge against stockouts and price increases.

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Definitions:

Required Rate of Return

The minimum return an investor expects to earn on an investment, considering its risk level and alternative opportunities.

Margin

The difference between the selling price of a product or service and its cost, expressed as a percentage of the selling price.

Turnover

A measure of a company's sales or revenues relative to the average value of its assets, inventory, or employees.

Return on Investment

A measure of the financial gain or loss on an investment relative to the amount of money invested.