To Make an S Election Effective as of the Beginning

question 43

True/False

To make an S election effective as of the beginning of the current year, an S corporation must file IRS Form 2553 within 3½ months after the beginning of the year.

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Definitions:

JIT

Just-In-Time, a production strategy that aims to reduce times within the production system as well as response times from suppliers and to customers.

Upstream

In the context of supply chain, refers to the activities or processes involved in obtaining raw materials or components required for manufacturing.

JIT

Just-In-Time; an inventory management strategy that minimizes inventory and maximizes efficiency by receiving goods only as they are needed in the production process.

Excess Inventory

Inventory levels that exceed the demand, often resulting in wasted resources and storage costs.