Which of the Following Is a Drawback of a Just-In-Time

question 30

Multiple Choice

Which of the following is a drawback of a just-in-time system?

• A) Transport costs are high when using a just-in-time system.
• B) It leaves a firm without a buffer stock of inventory.
• C) It increases the warranty costs associated with products.
• D) It leaves a firm with high scrap costs associated with defective products.

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Definitions:

Federal Income Tax

A tax levied by the federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Medicare Taxes

Taxes withheld from income to fund Medicare, the United States' federal healthcare program for individuals aged 65 and older and some younger people with disabilities.

Marginal Tax Rates

The rate of tax applied to your last dollar of income, representing what percentage of any additional earned income will be taken as tax.

Average Tax Rates

The ratio of the total amount of taxes paid to the total income, providing a measure of the tax burden.