For the year in which the change takes place (assuming rising prices), adoption of a "just-in-time" inventory system will most likely result in a(n):
A)permanent increase in the size of the inventory
B)reduction in income taxes
C)increase in total assets
D)increase in income

Question

Quizplus · Accepted Answer

Just-in-time inventory system is designed to reduce inventory levels and improve efficiency by delivering goods just in time for production or sale. In the year of adoption, the inventory levels will decrease, resulting in lower inventory holding costs, and thereby an increase in income.

For the Year in Which the Change Takes Place (Assuming