A Just-In-Time Inventory System Allows a Firm To

question 201

Multiple Choice

A just-in-time inventory system allows a firm to:

• A) extend credit to new customers.
• B) provide sufficient inventory for most contingencies.
• C) reduce their investment in inventory.
• D) reduce capital expenditures.

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Definitions:

Gross Pay

The total amount of salary or wages earned by an employee before any deductions are made for taxes, insurance, and other contributions.

Workweek

The standard number of working hours or days that constitutes a full week of work for an employee.

Progressive Income Tax

A tax system where the tax rate increases as the taxable amount of income increases, placing a higher tax burden on high-income earners.

Taxable Income

Taxable income is the amount of income that is subject to income tax, after deductions and exemptions.