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 businesses. 2. Just in Time (JIT) Production allows manufacturing businesses to reduce costs by keeping stock of raw materials to a minimum. 3. Lead Time is the amount of time it takes a supplier to fulfil an order. 4. Economies of scale increase costs when a business buys large quantities of raw materials in bulk at a discount. 5. Optimum stock level is the ideal amount of stock a business should have at any given time.

Leaving Cert Business Management Activities: Write True or False after each o

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 primarily focuses on the exchange of business data between organizations, not specifically 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 works to minimize inventory holding costs by ordering raw materials just 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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Answer

True. Lead time refers to the duration from when an order is placed until it is delivered.

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. Economies of scale typically reduce costs per unit as production increases, but it’s possible for a businesses to incur costs if poor purchasing decisions or inefficiencies arise.

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 represents the most efficient quantity of stock that balances supply and demand.

Write True or False after each of the following statements - Leaving Cert Business - Question 7 - 2020

Worked Solution & Example Answer:Write True or False after each of the following statements - Leaving Cert Business - Question 7 - 2020

1. Electronic Data Interchange (EDI) involves a business exchanging its customer's data with other businesses.

2. Just in Time (JIT) Production allows manufacturing businesses to reduce costs by keeping stock of raw materials to a minimum.

3. Lead Time is the amount of time it takes a supplier to fulfil an order.

4. Economies of scale increase costs when a business buys large quantities of raw materials in bulk at a discount.

5. Optimum stock level is the ideal amount of stock a business should have at any given time.

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