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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Naomi

2 months ago

Just-in-time, just-in-time, what a rhyme! But the right answer is definitely C, more inspection needed.

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Yen

22 days ago

C) A greater need for inspection of goods as the goods arrive.

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Sylvie

23 days ago

B) Fewer deliveries from suppliers.

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Carman

27 days ago

A) A reduction in the number of suppliers.

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Brittni

2 months ago

D seems like the odd one out here. Less need for vendor integration? I don't think so!

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Bok

1 months ago

C) A greater need for inspection of goods as the goods arrive.

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Tasia

1 months ago

B) Fewer deliveries from suppliers.

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Shawn

2 months ago

A) A reduction in the number of suppliers.

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Latanya

3 months ago

I'm leaning towards A. Reducing the number of suppliers is a common strategy with just-in-time systems.

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Rosalind

1 months ago

B) Fewer deliveries from suppliers.

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Levi

2 months ago

I agree, having fewer suppliers can help streamline the process.

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Providencia

2 months ago

A) A reduction in the number of suppliers.

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Noelia

3 months ago

I'm pretty sure the answer is B. Fewer deliveries from suppliers is a key characteristic of just-in-time purchasing.

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Louann

3 months ago

Hmm, I think the correct answer is C. With just-in-time systems, the need for inspection is greater as goods arrive less frequently.

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Willow

2 months ago

Yes, it's all about efficiency and quality control in these systems.

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Adaline

2 months ago

Actually, the correct answer is B. Fewer deliveries mean less need for inspection.

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Dalene

2 months ago

That makes sense, it's important to ensure the quality of goods with just-in-time systems.

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Hyman

3 months ago

I agree, having fewer deliveries means each delivery is more critical to inspect.

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Mica

3 months ago

I think the correct answer is C. With just-in-time systems, the need for inspection is greater as goods arrive less frequently.

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Viva

3 months ago

I agree, with just-in-time systems, inspection becomes more crucial.

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Martin

3 months 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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Laura

3 months 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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Shayne

4 months ago

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

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