Companies That Implement JIT Purchasing Will Emphasize Developing Short-Term Supplier

question 105

True/False

Companies that implement JIT purchasing will emphasize developing short-term supplier relationships with many suppliers to attain flexibility.

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Definitions:

Net Operating Income

An essential metric showing the profitability of a company's core business activities, excluding the effects of financing and investment income.

Variable Cost

Expenses that change in proportion to the amount of goods or services produced.

Advertising

The action of calling public attention to products, services, or events, typically through paid announcements in various media platforms.

Margin Of Safety

It represents the difference between actual or budgeted sales and the break-even point. It indicates how much sales can fall before a business incurs a loss.