Which of the Following Is NOT True About the Just-In-Time

question 47

Multiple Choice

Which of the following is NOT true about the Just-in-time approach to inventory?

• A) High dependence on suppliers
• B) Focuses on keeping inventory level to the maximum
• C) Lowers inventory carrying costs
• D) Vulnerable to natural disaster

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Definitions:

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, assigning weights to some of the numbers more than others.

Stock Options

Financial instruments granting the holder the right, but not the obligation, to buy or sell a stock at a specified price within a certain period.

GAAP

Generally Accepted Accounting Principles, which are standards and conventions for financial reporting in the United States.

Compensation Costs

The expenses incurred by a company to pay employees, including salaries, benefits, bonuses, and social security contributions.