Which of the Following Is the Major Benefit to a Firm

question 76

Multiple Choice

Which of the following is the major benefit to a firm of using just-in-time inventory management?

• A)minimizes the risk of stock-outs
• B)minimizes the total number of orders that the firm places
• C)reduces acquisition costs for placing goods in inventory
• D)largely eliminates the carrying costs of maintaining a large inventory
• E)reduces the time needed to acquire inventory

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Definitions:

Operating Expenses

Costs incurred in the day-to-day operations of a business, excluding costs related to producing goods or services.

Supplies Expense

The cost associated with materials or goods required to operate a business but not directly tied to the products sold.

Rent Expense

This outlines the cost incurred by a business to use property or equipment as part of its operational activities for a certain period.

Wages Expense

The total cost incurred by a company to compensate its employees, including salaries, wages, and other forms of employee benefits.