Superior Supplies' Largest Customer Recently Implemented a Just-In-Time Inventory System

question 298

Multiple Choice

Superior Supplies' largest customer recently implemented a just-in-time inventory system. As a supplier of materials to this customer, Superior will:

• A)realize significant freedom in scheduling deliveries.
• B)likely increase its effort and likely experience higher transportation costs.
• C)place less emphasis on quality and greater emphasis on quantity.
• D)need to deliver large quantities at regularly scheduled intervals.

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Definitions:

Asset

Assets held by a company or person anticipated to yield economic advantages in the future.

Expense Payable

Obligations or liabilities to pay for goods or services received but not yet paid for.

Accounting Equation

The fundamental equation of double-entry bookkeeping: Assets = Liabilities + Owner's Equity, representing a company's financial position.

Assets

Resources owned by a business or individual that are expected to provide future economic benefits.