The Reason a Just-In-Time System Focuses on the Control of Inventories

question 5

Multiple Choice

The reason a just-in-time system focuses on the control of inventories is because:

• A) they drive production lead times.
• B) they are an expensive capital item for most firms.
• C) they are what customers want.
• D) they have non-value-added characteristics.

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Definitions:

Excise Tax

A tax imposed on specific goods, services, or activities within a country, often levied on items like tobacco, alcohol, and gasoline to discourage their use or generate revenue.

Deadweight Losses

Economic inefficiencies that occur when the equilibrium in a market is not achieved or is distorted, typically resulting in lost welfare or inefficiency.

Ability-to-Pay Principle

A taxation principle that suggests taxes should be levied according to an individual's or entity's ability to pay, implying those with higher income should pay more taxes.

Taxes

Mandatory fiscal contributions or other forms of levies required from taxpayers by governmental bodies to support government expenditures and diverse public costs.