Accounting 9706 · AS & A Level · Costs and cost behaviour

Costs and cost behaviour — practice question

Julia runs a retail business selling electronic equipment. She decides to introduce a just-in-time inventory management system. Which benefit could she expect from this?

  • Ato be able to take advantage quickly of product improvements
  • Bto increase the amount of trade discount she can receive
  • Cto limit the effect on her profit of price rises by the manufacturer
  • Dto protect herself better from shortages of goods to sell

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