Despite Its Advantages,the Just-In-Time Operating Environment Produces Increased Carrying Costs

question 50

True/False

Despite its advantages,the just-in-time operating environment produces increased carrying costs for inventory.

---

Definitions:

Labor-Hour Contract

A contract in which payment is made based on the number of hours worked, typically used for projects where the scope is not clearly defined.

Hourly Rate

The amount of money paid for each hour of work.

Incentive Fee Contract

A contract type that provides additional compensation to the contractor for exceeding performance targets.

Cost Reimbursable Contract

A contract where the buyer reimburses the contractor for all legitimate costs incurred plus an additional fee for profit.