Which of the Following Uses of Inventory Is Used to Make

question 50

Multiple Choice

Which of the following uses of inventory is used to make sure that adjacent process steps in a production line maintain pace?

• A)the decoupling function
• B)quantity discounts
• C)alleviating irregular demand
• D)the translucent function

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Definitions:

Variable Cost

A cost that changes in direct proportion to changes in the level of business activity or output.

Fixed Cost

A cost that does not vary with the level of production or sales, such as rent, property taxes, and salaries.

Least-Squares Regression

A statistical technique used to determine the line that best fits a set of data points, minimizing the sum of the squares of the differences between the observed and estimated values.

Variable Cost

Expenses that change in direct proportion to the amount of production or the quantity of output generated.