The goal of managing working capital, such as inventory, should be to minimize the:
A) costs of carrying inventory
B) amount of spoilage or pilferage
C) opportunity cost of capital
D) aggregate of carrying and shortage costs
Answer: D) aggregate of carrying and shortage costs
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Creating A-plus value is primarily for external customers since many of these actions will not work for internal customers (employees)
Indicate whether the statement is true or false
Two countries that score low in uncertainty avoidance are:
A) Austria and Belgium. B) Japan and Hong Kong. C) United States and Switzerland D) Denmark and Finland. E) Ireland and Italy.
According to the just-in-time philosophy,
A) finished goods should always be available in case a customer wants something. B) employees should be expert at one function rather than be cross-trained for multiple functions. C) movement of the product and material is reduced. D) the product moves from process to process until completion.
Normal Projects S and L have the same NPV when the discount rate is zero. However, Project S's cash flows come in faster than those of L. Therefore, we know that at any discount rate greater than zero, L will have the higher NPV.
Answer the following statement true (T) or false (F)