Effective Use of Supply Chain Management Software Is Generally Expected

question 57

Multiple Choice

Effective use of Supply Chain Management software is generally expected to provide all of the following benefits except:

• A)Reduced inventory carrying costs.
• B)Lower production costs.
• C)Lower payroll costs.
• D)Better communications with suppliers.

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Definitions:

Fixed Costs

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

Variable Costs

Costs of production that vary with the level of output, such as raw materials and labor expenses.

Temporarily

For a limited period of time; not permanent.

Short-Run Profits

Earnings that a company makes over a short period of time, not taking into consideration the full costs of production in the long term.