Because Manufacturers with JIT Systems Produce Merchandise Closer to the Time

question 84

Multiple Choice

Because manufacturers with JIT systems produce merchandise closer to the time of sale, they can

• A)organize cooperative agreements among competing manufacturers to reduce oversupply.
• B)reduce inventories needed to satisfy retailers' demand.
• C)use exclusive geographic territories to centralize production.
• D)effectively eliminate the need for a dispatcher.
• E)replace independent supply chains with corporate supply chains.

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Definitions:

Note Receivable

A promissory note held by the lender, stating the money due to be paid back by the debtor.

Maturity

Maturity in finance refers to the date on which the principal or final payment of a loan, bond, or other financial instrument is due to be paid in full.

Percent of Sales Method

A financial forecasting model used to estimate certain balance sheet and income statement figures based on projected sales revenue.

Uncollectible Accounts Receivable

Refers to the portion of accounts receivable that a company does not expect to collect due to customers being unable to pay.