Just-In-Time Delivery Means That Producers Have Less Inventory to Cushion

question 40

True/False

Just-in-time delivery means that producers have less inventory to cushion against disruptions in the arrival of needed parts.

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Definitions:

Fixed Costs

Costs that do not change with the level of production or sales, such as rent or salaries.

Flexible Budget

A budget that adjusts or varies with changes in volume or activity levels.

Level Of Activity

Refers to the volume of production or operations within a business, which can impact costs and efficiency.

Fixed Costs

Expenses that do not change with the level of production or sales over a short period.