Which of the following is true about firms using a just-in-time (JIT) inventory system?
A. A company is more likely to have excess unsold inventory that it has to write off against earnings.
B. Parts enter the manufacturing process immediately; they are not warehoused.
C. It is difficult to spot and fix defective inputs.
D. The amount of working capital a company needs to finance inventory increases.
E. A firm has ample buffer stock of inventory.
Answer: B. Parts enter the manufacturing process immeditately; they are not warehoused