Which of the Following Is True Regarding JIT Systems

question 70

Multiple Choice

Which of the following is true regarding JIT systems?

• A)JIT systems do not have backup inventory.
• B)JIT usually entails less frequent deliveries.
• C)JIT requires manufacturers to add new warehouses.
• D)JIT requires suppliers to respond to very short order lead times and the customer's production schedule.
• E)JIT requires manufacturers to locate their facilities next to important customers.

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Definitions:

Third Party Payors

Entities (usually insurance companies or government agencies) that pay for healthcare services on behalf of patients.

Contractual Adjustments

Adjustments made to the gross amount of charges for services provided, primarily in healthcare, based on pre-negotiated agreements with payers or insurers.

Amounts Pledged

The values of assets that have been promised as security for a loan or obligation.

Uncollectible

Accounts receivable that cannot be recovered and are therefore written off as a loss.