For the year in which prices rise, adoption of a "just-in-time" inventory system will most likely result in
A) a permanent increase in the size of the inventory
B) a reduction in income taxes
C) an increase in total assets
D) an increase in income

Question

Quizplus · Accepted Answer

An increase in income is the most likely result of adopting a "just-in-time" inventory system in a year in which prices rise. This is because the company will be able to purchase inventory at a lower cost and sell it at a higher price, resulting in a higher profit margin.

For the Year in Which Prices Rise, Adoption of a "Just-In-Time