Just-In-Time Systems Allow Manufacturers to Save Money on Storing, Insuring

question 23

True/False

Just-in-time systems allow manufacturers to save money on storing, insuring, and financing inventories, by maintaining lower levels of inventory.

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Definitions:

User Cost

The cost associated with the use of a product or service, including wear and tear, depreciation, and the opportunity cost of not using the asset for an alternative purpose.

Extraction Cost

The expenses associated with the removal of raw materials from their natural setting, including mining, drilling, and quarrying activities.

Interest Rates

The cost of borrowing money or the return on investment for savings, typically expressed as a percentage of the principal.

Conflict Diamonds

Diamonds that are mined and sold by combatants in war zones in Africa as a way to provide the currency needed to finance their military activities.