Cycle Inventories Are Used To

question 20

Multiple Choice

Cycle inventories are used to:

• A)avoid an anticipated change in supply,demand,or price.
• B)protect against disruptions due to unplanned events.
• C)reduce the number of setups.
• D)accommodate different rates or patterns of demand.
• E)avoid an anticipated change in supply,demand,or price,and protect against disruptions due to unplanned events.

---

Definitions:

Marginal Cost

The additional expenditure involved in producing one further unit of a product or service.

Fixed Cost

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance expenses.

Variable

An element, feature, or factor that is liable to vary or change; used in statistical analysis and experiments.

Output

The total amount of goods and services produced by an economy or a production process.