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 is primarily about exchanging structured data and documents electronically rather than personal or sensitive 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 minimizes inventory costs, allowing businesses to reduce overhead by only maintaining necessary stock levels.
Step 3
3. Lead Time is the amount of time it takes a supplier to fulfil an order.
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Answer
True. Lead time specifically refers to the duration from order placement to the receipt of the goods.
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 or True. While economies of scale typically lower costs due to bulk purchasing, they may increase costs if not managed properly or if larger quantities lead to excess inventory.
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 to balance between supply needs and storage costs effectively.
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