Which of the Following Is a Drawback of a Just-In-Time

question 30

Multiple Choice

Which of the following is a drawback of a just-in-time system?

• A) Transport costs are high when using a just-in-time system.
• B) It leaves a firm without a buffer stock of inventory.
• C) It increases the warranty costs associated with products.
• D) It leaves a firm with high scrap costs associated with defective products.

Analyze the similarities and differences in financial statements between service and retail businesses.

Understand the closing process and the accounts involved in closing entries.

Identify and understand various discounts, terms, and policies in inventory management.

Recognize the accounts included and not included in the cost of merchandise sold section.

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Definitions:

Managerial Mistakes

Managerial mistakes refer to errors made by managers, often due to poor decision-making, lack of information, or oversight, which can negatively impact an organization.

Competitive Activity

Actions taken by companies to gain an advantage or achieve superior performance relative to their competitors.

Interdependency

A mutual reliance between two or more entities where each depends on the others for success, resources, or support.

Strategic Planning

The process of defining an organization's strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people.