Post Utme Coal City University 2024 Commerce Question 18

Practice objective / multiple choice question 18 from the 2024 Post Utme Coal City University Commerce examination.

Post Utme Coal City University 2024 Commerce Objective / Multiple Choice
Question 18 POST_UTME_COAL_CITY_UNIVERSITY • 2024 • COMMERCE • objective

A company is considering implementing a just-in-time (JIT) inventory system. Using the concept of inventory turnover, explain why JIT is more effective than traditional inventory systems in reducing inventory costs.

Answer Options

Correct Answer A. Because JIT reduces inventory costs by minimizing inventory holding costs
B. Because JIT increases inventory turnover by reducing lead times
C. Because JIT reduces inventory costs by minimizing ordering costs
D. Because JIT increases inventory turnover by minimizing inventory levels
Correct Answer
A
Correct Option:
Because JIT reduces inventory costs by minimizing inventory holding costs

About This Question

This is Post Utme Coal City University 2024 Commerce Question 18. It is one of the objective questions from the 2024 Post Utme Coal City University Commerce examination.

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