Which of the Following Is True About Firms Using Just-In-Time

question 40

Multiple Choice

Which of the following is true about firms using just-in-time (JIT) inventory system?

• A)A company is more likely to have excess unsold inventory that it has to write off against earnings.
• B)Parts enter the manufacturing process immediately; they are not warehoused.
• C)It is difficult to spot and fix defective inputs.
• D)The amount of working capital a company needs to finance inventory increases.
• E)A firm has ample buffer stock of inventory.

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Definitions:

Norms

Shared expectations and rules that guide behavior of people within a group or culture.

Social Values

Collective ideals that are considered significant and beneficial for the welfare and cohesion of society.

Innovation

The process of translating an idea or invention into a good or service that creates value or for which customers will pay.

Positive Change

Modifications or adjustments leading to improvement and adding value to a situation or process.