The Benefits of a Just-In-Time System Would Include All of the Following

question 66

Multiple Choice

The benefits of a just-in-time system would include all of the following except:

• A) increased warehousing costs.
• B) reduced inventory holding costs.
• C) improved customer satisfaction.
• D) decrease in the number of suppliers.

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Definitions:

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, reflecting its consumption, wear and tear, or obsolescence.

Useful Life

The estimated time period that an asset is expected to be usable, contributing to the revenue-generating activities of a business.

Straight-Line Method

The straight-line method is a depreciation technique that allocates an even portion of an asset's cost to each year of the asset's useful life.

Accumulated Depreciation

The total sum of depreciation expense that has been recorded on a company's assets up to a specific date, reflecting the loss of asset value over time.