A Just-In-Time (JIT) Inventory System

question 28

Multiple Choice

A just-in-time (JIT) inventory system:

• A) focuses only on the conversion stage of the value creation process.
• B) reduces the costs of customization.
• C) decreases task interdependence.
• D) requires the use of CAD.

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Definitions:

Discount Period

The timeframe during which a discount is offered for the early payment of an invoice or a bill, encouraging quicker payment.

Sales Invoice

A document issued by a seller to a buyer that lists products or services sold, including quantities and prices.

Accounts Receivable

Accounts receivable from customers for delivered goods or services awaiting payment.

Credit Customer

A customer who purchases goods or services on credit, agreeing to pay the seller at a later date.