Which of the following is NOT a benefit of holding inventory?
A) minimizes the risk that the firm will not be able to obtain an input it needs for production
B) seasonality of demand, meaning that customer purchases often do not match the most efficient production cycle, leading to a buildup of inventory in off-peak periods
C) minimizes order cost from placing multiple orders throughout the year
D) minimizes risks involved in spoilage and obsolescence
Answer: D
You might also like to view...
Which of the following statements is correct? The client-server model
a. is best suited to the token-ring topology because the random-access method used by this model detects data collisions. b. distributes both data and processing tasks to the server's node. c. is most effective used with a bus topology. d. is more efficient than the bus or ring topologies.
All of the following are principles on which the American Institute of Certified Public Accountants current code of conduct is based except
a. The public interest b. Objectivity and independence c. Management interest d. Due care
The subtotals of the Income Statement columns of the work sheet are $6,200 in the debit column and $4,900 in the credit column. If the subtotal of the Balance Sheet Debit column is $19,000, then the subtotal of the Balance Sheet Credit column should be:
a. $20,300 b. $1,300 c. $17,700 d. $14,400 e. none of the above.
Successful businesses have learned that unethical behavior
a. is sometimes required when persuading people in lower socioeconomic groups. b. is sometimes justified when the desired action is achieved. c. is always followed by negative legal consequences. d. is not good for business in the long run.