It Is Well Documented That JIT Reduces Physical Inventory Level

question 24

True/False

It is well documented that JIT reduces physical inventory level. Reductions in physical inventory will also have a favorable impact on:
Reduced insurance premiums associated with the storage of inventory.Reduced inventory holding costs.Reduced labor cost in store rooms and material handing costs.Reduced clerical and administrative costs.Reduced waste from the manufacturing process.Reduced obsolescence costs.Reduced deprecation of handling and storage equipment.ach of the cost savings will result in a leaner more profitable operation.

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Definitions:

Dividends

Disbursements issued by a company to its shareholders, representing a share of the earnings distributed to its stock owners.

Residual

The amount remaining after the principal parts have been taken away or used up, often used in financial contexts.

Dividend Aversion

A theoretical behavior where investors prefer companies that retain earnings over those that pay out dividends, possibly due to tax advantages.

Capital Gains

The increase in value of an asset or investment over time, which becomes apparent when the asset is sold for more than its purchase price.