Write True or False after each of the following statements - Leaving Cert Business - Question 7 - 2020
Question 7
Write True or False after each of the following statements.
1. Electronic Data Interchange (EDI) involves a business exchanging its customer's data with other busin... show full transcript
Worked Solution & Example Answer:Write True or False after each of the following statements - Leaving Cert Business - Question 7 - 2020
Step 1
1. Electronic Data Interchange (EDI) involves a business exchanging its customer's data with other businesses.
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Answer
False. EDI refers to the electronic exchange of business information in a standardized format, typically involving transaction data, rather than individual customer data.
Step 2
2. Just in Time (JIT) Production allows manufacturing businesses to reduce costs by keeping stock of raw materials to a minimum.
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Answer
True. JIT production aims to reduce storage costs by receiving goods only as they are needed in the production process.
Step 3
3. Lead Time is the amount of time it takes a supplier to fulfil an order.
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True. Lead time measures the interval between the initiation of a request and the fulfillment of that request, typically indicative of supplier performance.
Step 4
4. Economies of scale increase costs when a business buys large quantities of raw materials in bulk at a discount.
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Answer
False. Economies of scale typically refer to the cost advantages that businesses experience when they increase production, allowing them to lower costs.
Step 5
5. Optimum stock level is the ideal amount of stock a business should have at any given time.
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Answer
True. The optimum stock level is calculated based on sales forecasts, lead times, and demand patterns to minimize holding costs while meeting customer demand.
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