A JIT System ________

question 57

Multiple Choice

A JIT system ________.

• A) reduces inventory turnover
• B) reduces inventory holding costs
• C) increases warehousing costs
• D) increases buffer stock of inventory

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Definitions:

Financing Activity

Refers to transactions and events that affect long-term liabilities and equity of a company, including securing loans and issuing shares.

Investing Activity

Financial actions related to the acquisition and disposal of long-term assets and other investments not considered as cash equivalents.

Mortgage Payable

A long-term liability representing the amount owed on a property mortgage, which is to be paid back over a period.

Noncash Investing

Investing activities that do not involve cash transactions, often including exchanges of noncash assets or liabilities for other noncash assets or liabilities.