Collier Company has implemented a just-in-time system, which relies on suppliers to deliver goods for resale as needed.This implementation is most consistent with which of the following basic principles of cash management?
A)Increasing the speed of receivables collection.
B)Planning the timing of major expenditures.
C)Keeping inventory levels low.
D)Delaying the payment of liabilities.

Question

Quizplus · Accepted Answer

A just-in-time system is designed to minimize inventory levels by receiving goods only as they are needed, which aligns with the principle of keeping inventory levels low to reduce holding costs and improve cash flow.

Collier Company Has Implemented a Just-In-Time System, Which Relies on Suppliers