Which of the Following Is Not a Good Approach for Suppliers

question 45

Multiple Choice

Which of the following is not a good approach for suppliers who are providing JIT services to manufacturers?

• A) Use the "push system" for deliveries
• B) Locate near their customers
• C) Have small warehouses near the manufacturing plant
• D) Use standardized containers
• E) Join together with other suppliers to help each other make small deliveries

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Definitions:

Consolidated Income Statement

An income statement that combines the financial performance of a parent company and its subsidiaries, showing the total revenue, expenses, and net income of the entire group.

Intercompany Bonds

Bonds issued between entities within the same corporate group, often used for internal financing purposes.

Unamortized Acquisition Differential

The portion of the difference between the acquisition cost of an asset and its carrying value on the balance sheet that has not yet been amortized.

Equity Method

A method of accounting whereby an investor records its investment in an associate company at initial cost and subsequently adjusts the carrying amount of the investment to recognize the investor's share of the earnings or losses of the associate.