Under a More Traditional System as Opposed to a Just-In-Time

question 93

Multiple Choice

Under a more traditional system as opposed to a just-in-time inventory system, warehousing parts for weeks before they are used:

• A)reduces the total working capital required by a firm.
• B)allows many defective parts to be produced before a problem is recognized.
• C)results in a near error-free production process.
• D)reduces the costs related to inventory holding.
• E)reduces the need to write off excess unsold inventory against earnings.

---

Definitions:

Nominal GDP

Gross Domestic Product measured at current market prices without adjustment for inflation.

Inflation

The rate of elevation in the uniform prices of goods and services, undermining the capability to buy more.

GDP Deflator

An economic metric that converts output measured at current prices into constant-dollar GDP, detaching price changes from real output changes.

Nominal GDP

Gross Domestic Product measured in current market prices, without adjustment for inflation, reflecting the value of all goods and services produced by an economy in a year.