Which of the Following Statements About Just-In-Time Purchasing, Compared with Traditional

question 52

Multiple Choice

Which of the following statements about just-in-time purchasing, compared with traditional purchasing systems, is/are true?

• A) Quality control by the supplier is more crucial.
• B) Adherence to delivery schedules by the suppliers is more crucial.
• C) Vendors can be dropped or added quickly.
• D) Quality control by the supplier is more crucial AND adherence to delivery schedules by the suppliers is more crucial.

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Definitions:

Perfect Competitor

A theoretical concept in which a market structure has many small sellers, all producing homogeneous products with no control over market price.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, representing additional gain over and above normative expectations.

ATC

Average Total Cost, which is calculated by dividing the total cost by the quantity of output produced.

Economic Profit

The surplus or profit remaining after deducting both explicit and implicit costs, including opportunity costs, from total revenues.