All of the Following Are Potential Financial Benefits of Just-In-Time

question 38

Multiple Choice

All of the following are potential financial benefits of just-in-time EXCEPT:

• A)lower investments in plant space for inventories.
• B)lower investments in inventories.
• C)reducing the risk of obsolescence of products.
• D)reducing manufacturing lead time.

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Definitions:

Repairs

Actions taken to restore something damaged or deteriorated to a good or sound condition.

Property Taxes

Taxes levied by local governments on real estate based on the value of the property.

Book Value

The net value of a company's assets minus its liabilities and preferred stock, often compared to its market value.

Operating Cash Flow

The cash generated from a company’s normal business operations, indicating its ability to generate sufficient revenue to maintain operations.