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

question 119

Multiple Choice

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

• A)It results in a decrease in production space.
• B)It increases the inventory cost.
• C)The risk of the inventory becoming obsolete is very high.
• D)The users of this system sometimes lose sales because of little or no inventory buffers.

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Definitions:

Tax Return

A form filed with a government body declaring liability for taxation, containing details of income earned and taxes owed.

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity, often including a profit and loss statement, balance sheet, and cash flow statement.

Accrual Basis

An accounting method that records revenues and expenses when they are incurred, regardless of when cash is exchanged.

Accounting

The practice of recording, classifying, and reporting on financial transactions to track an entity's financial status and performance.