Cost Savings from Just-In-Time (JIT) Inventory Management Include(s)

question 124

Multiple Choice

Cost savings from Just-In-Time (JIT) inventory management include(s)

• A) reduced overhead expenses.
• B) lower inventory financing costs.
• C) greater productivity.
• D) All of the options are true.

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Definitions:

Current Ratio

A financial metric used to measure a company's ability to pay its short-term liabilities with its short-term assets.

Debt Ratio

A financial ratio that compares the amount of debt a company has to its total assets.

Inventory Turnover Ratio

A measure of how many times a company's inventory is sold and replaced over a given period, indicating the efficiency of inventory management.

Current Ratio

A financial metric that measures a company's ability to pay short-term obligations with its current assets.