A Problem Experienced with JIT Is

question 75

Multiple Choice

A problem experienced with JIT is

• A) that having just enough inventory leaves the firm without a buffer.
• B) keeping the labor supply stable.
• C) maintaining production equipment when demand is higher than expected.
• D) all of the above

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Definitions:

Physical Substance

The material or tangible component of an asset, as opposed to intangible assets like patents or copyrights.

Trade-In Allowance

The amount credited to the buyer by the seller for a product being traded in towards the purchase of a new product.

Book Value

Book value is the net value of a company's assets as recorded on the balance sheet, calculated by subtracting liabilities from the total value of assets.

Gain On Exchange

The profit realized from exchanging one asset for another asset of greater value.