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.

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Definitions:

Fundamental Analysis

An approach to determining the intrinsic value of a security by analyzing related economic, financial, and other qualitative and quantitative factors.

Yield

The income return on an investment, such as the interest or dividends received, expressed as a percentage of the investment's cost or current value.

Financial Statements

Reports that provide an overview of a company's financial condition, including balance sheet, income statement, and cash flow statement.

Current Health

A broad term that can refer to the present state of physical or financial well-being, but is NOT a specific finance key-term.