An Advocate of Just-In-Time Inventory System Would Advocate

question 79

Multiple Choice

An advocate of just-in-time inventory system would advocate:

• A)Maintaining a large inventory selection for customers.
• B)Leaving extra time in order to make inventory deadlines.
• C)Maintaining a small inventory supply.
• D)LIFO over FIFO.

---

Definitions:

Prepaid Expense

Expenses paid in advance for goods or services to be received in the future, recorded as an asset on the balance sheet until they are incurred.

Prepaid Insurance

The portion of insurance premiums that have been paid in advance and is recorded as an asset until utilized.

Insurance Expense

Costs incurred by a business or individual for insurance coverage, including health, property, and liability insurance.

Accrued Wages

Wages that have been earned by employees but have not yet been paid by the company.