Explain an Advantage of Using the JIT Inventory System

question 2

Essay

Explain an advantage of using the JIT inventory system. Also explain the disadvantage of using this system.

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Definitions:

Tax Deductible

Expenses that can be subtracted from gross income to reduce the amount of income subject to taxation.

Home Equity Loans

A type of loan in which the borrower uses the equity of their home as collateral. These loans are often used to finance major expenses.

APC

Average Propensity to Consume, which is the fraction of income that is spent on consumption rather than savings.

Last 20 Years

Refers to the most recent two decades, a common time frame for analyzing changes and trends in economic, social, or technological domains.