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:

Public Policy

The principles and guidelines by which governments operate, including laws, regulations, decisions, and actions to address public issues.

Eating Disorders

Mental disorders characterized by abnormal eating habits that negatively affect a person's physical or mental health.

Obesity

A medical condition characterized by excessive body fat accumulation, which poses a risk to health.

Hypothesis

A proposed explanation made on the basis of limited evidence as a starting point for further investigation.