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Q. Show the benefits of JIT?
Additionally to a higher price and quicker settlement by its major customer such a JIT agreement offers several benefits to the supplier of goods. Along with these are
- A guaranteed order from a major customer will facilitate output planning and the ordering of materials as inputs into its own production. Marton possibly capable of negotiate JIT arrangements with its own suppliers using the experience gained.
- The close co-operation inherent in a JIT agreement may support Marton and its customer to engage in joint research and development into planning future products.
- The experience gained in supplying main customer may give Marton the confidence and reputation to negotiate JIT agreements with other customers.
Q. Define Implicit cost and explicit costs? Implicit cost and explicit costs: the implicit cost is the rate of return associated with the best invests opportunity for the firm
State the Significance of the Cost of Capital It must be recognized at the outset that cost of capital is one of the most difficult and disputed topics in the finance theory.
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