In a Just-In-Time Inventory System, the Producer Holds Large Quantities

question 153

True/False

In a just-in-time inventory system, the producer holds large quantities of the materials and components used in the production process in its inventory to ensure that it always has enough on hand.

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Definitions:

Investment Sale

The process of selling securities or assets with the aim of generating returns such as capital gains or income.

Parent Company

A corporation that owns enough voting stock in another corporation to control its board of directors and therefore its policies and management.

Subsidiary

A company that is controlled by another entity, known as the parent company, through ownership of more than half of its voting stock or through other means.

Consolidated Net Income

The total profit of a parent company and its subsidiaries after all expenses, including those of subsidiary companies, are subtracted.