E&OE is trying to minimize its inventory costs, which are extremely high. The company has realized that it can achieve this by maintaining a near-zero inventory and producing more only once a product is ordered
Which of the following is true for E&OE?
A) Inventory costs are lower than order-processing costs.
B) Running costs are higher than inventory-carrying costs.
C) Setup costs for the products are low.
D) Order-processing costs are high.
E) Order-processing costs are lower than setup costs.
C
You might also like to view...
Explain market offerings and marketing myopia
What will be an ideal response?
The formula to compute annual straight-line depreciation is:
A. (Cost minus salvage value) divided by the useful life in years. B. Depreciable cost divided by useful life in units. C. Cost multiplied by useful life in years. D. Cost divided by useful life in units. E. (Cost plus salvage value) divided by the useful life in years.
Which of the following is a method to maximize the selling price?
A. Market estimation valuation B. Discounted future net cash flow C. Asset-based valuation D. All of these
The most likely union avoidance strategy in a paternalistic/strategic organization is:
A. Participatory management. B. Adversarial HR management. C. Union suppression. D. Union substitution.