Which of the Following Is NOT a Benefit of a Just-In-Time

question 41

Multiple Choice

Which of the following is NOT a benefit of a just-in-time (JIT) system?

• A) Funds that have been tied up in inventories can be used elsewhere.
• B) Areas previously used to store inventories are made available for other more productive uses.
• C) The time required to fill an order is reduced,resulting in quicker response to customers and consequentially greater potential sales.
• D) Production workers are always busy.

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Definitions:

Credit Policies

Guidelines set by businesses to determine the terms and conditions for extending credit to customers.

Working Capital Policy

A strategy relating to managing a firm's short-term assets and liabilities with the objective of maintaining sufficient liquidity to carry out operations smoothly.

Top Management

The highest level of managers and executives who have the day-to-day responsibilities of managing a company or corporation, making strategic decisions.

Financing Nature

The characteristic manner or method in which a company prefers to finance its operations, typically equity, debt, or a hybrid.