AICPA Exam CPA-Business Topic 3 Question 83 Discussion

Actual exam question for AICPA's CPA-Business exam

Question #: 83
Topic #: 3

[All CPA-Business Questions]

Companies that adopt just-in-time purchasing systems often experience:

AA reduction in the number of suppliers.

BFewer deliveries from suppliers.

CA greater need for inspection of goods as the goods arrive.

DLess need for linkage with a vendor's computerized order entry system.

Show Suggested Answer

Suggested Answer: C

Choice 'c' is correct.

Choices 'a', 'b', and 'd' are incorrect, per the above calculation.

by Harrison at Mar 16, 2024, 08:48 AM

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9 days ago

But doesn't that also mean a greater need for inspection of goods as they arrive to ensure quality and avoid disruptions in production?

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11 days ago

I agree with Shayne. With just-in-time systems, companies aim to reduce inventory and have goods delivered only when needed.

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17 days ago

I think companies that adopt just-in-time purchasing systems often experience fewer deliveries from suppliers.

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