Under JIT Purchasing, Ordering Costs Are Most Likely to Be

question 43

Multiple Choice

Under JIT purchasing, ordering costs are most likely to be minimized by:

• A)increasing the number of vendors.
• B)making more frequent payments.
• C)increasing the number of inspections.
• D)eliminating inspections.
• E)ordering in large quantities.

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Definitions:

Fair Market

The price that an asset would sell for on the open market, under all conditions requisite to a fair sale.

Stock Dividend

A form of dividend payment made by a company to its shareholders in the form of additional shares rather than cash.

Market Price

The current market value at which a service or good can be traded.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and a claim on a part of the company's profits or losses.