M3-Ratio Anaylsis of Forecasts and Projections

Question 1

In a just-in-time system, products are produced just-in-time to be sold. Therefore, JIT systems maintain a much smaller level of inventory when compared to traditional systems. Inventory turnover (COGS/Average Inventory) increases with a switch to JIT, and inventory as a percentage of total assets decreases. (true or false)

Answer 1

true