The Desired Level of Inventories Is the Level at Which

question 312

Multiple Choice

The desired level of inventories is the level at which the extra cost (in lost sales) from lowering inventories by a small amount is

• A) greater than the extra gain (in interest revenue and decreased storage costs).
• B) zero.
• C) less than the extra gain in (in interest revenue and decreased storage costs).
• D) just equal to the extra gain (in interest revenue and decreased storage costs).

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Definitions:

Habituate

The process of becoming accustomed to a stimulus or environment, typically resulting in a decrease in response.

Choices

The act of selecting or making a decision when faced with two or more possibilities.

Sexual Orientation

An inherent or immutable enduring emotional, romantic, or sexual attraction to other people.

Attracted

To feel drawn towards a person, object, or activity due to its appealing qualities or characteristics.