Which of the Following Is NOT an Advantage of Just-In-Time

question 49

Multiple Choice

Which of the following is NOT an advantage of just-in-time inventory management?

• A) Surplus inventory is maintained to prevent production shut-down in case of supply interruption
• B) Lower inventory levels reduce storage cost
• C) Inventory kept for shorter periods of time reduces the amount of goods that become obsolete
• D) Reduce the amount of insurance needed for lower levels of inventory

Understand the concepts of cash flows, salvage value, and straight-line depreciation in investment assessment.

Calculate and interpret the accounting rate of return for investment decisions.

Understand and calculate the net present value (NPV) of an investment.

Grasp the importance of the internal rate of return (IRR) and its role in investment decisions.

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Definitions:

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