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:

Physical Capital Concept

The view that capital is a tangible asset, such as equipment or machinery, that is used in the production of goods and services.

Operating Capability

An entity's capacity to maintain the quality and level of its operations and services, often through efficient use and management of resources.

General Price Level

A measure of the average price of goods and services in an economy at a given time, reflecting inflation or deflation trends.

Systematic Risk

Risk factors common to the whole economy; also called market risk or nondiversifiable risk.