Just-In-Time Inventory Is a Method of Managing Purchasing,production,and Sales,by Which

question 155

Multiple Choice

Just-in-time inventory is a method of managing purchasing,production,and sales,by which

• A)the firm attempts to produce each item only as needed for the next step in the production process.
• B)the firm attempts to time purchases so that items arrive just in time for sale or production.
• C)the firm attempts to produce each item only as needed for the next step in the production process,and the firm attempts to time purchases so that items arrive just in time for sale or production.
• D)None of the answers is correct.

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Definitions:

Selling Price

The amount of money for which an item is sold to a buyer.

Hedge Transaction

A financial agreement or trade designed to reduce or eliminate the risk of future price fluctuations.

Forward Rate

A future exchange rate negotiated today, locking in the price at which a currency transaction will occur at a specified future date.

Forward Contract

A contractual agreement to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.