Zanda Corp. and Jones Corp. are identical in every way (products produced, costs, demand, etc.) except for one. Zanda uses a level production plan while Jones prefers a chase production plan. Which of the following is most likely to be true?
A. Jones will have higher investment in plant and equipment.
B. Jones will have higher hiring and firing costs.
C. Jones will have lower inventory carrying costs.
D. All of the selections are true.
D. All of the selections are true.
Explanation:
A chase production plan will require a higher investment in equipment and will endure fluctuating work force levels but will have lower inventory costs.
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