Many Companies Use Just-In-Time Inventory Methods

question 127

Multiple Choice

Many companies use just-in-time inventory methods.Which of the following is not an advantage of this method?

• A)It limits the risk of having obsolete items in inventory.
• B)Companies may not have quantities to meet customer demand.
• C)It lowers inventory levels and costs.
• D)Companies can respond to individual customer requests.

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Definitions:

Supply

The total amount of a specific good or service that is available to consumers at a given time.

Usury Law

Legislation that imposes a maximum interest rate creditors can charge borrowers to protect consumers from excessively high rates.

Quantity

The amount or number of a material or immaterial thing not usually estimated by spatial measurement.

Money

Main job is to be a medium of exchange; also serves as a standard of value and a store of value.