Which of the Following Cannot Be Considered as Independent Demand

question 25

Multiple Choice

Which of the following cannot be considered as independent demand items?

• A)wholesale and retail merchandise items
• B)maintenance,repair,and operating supplies at a manufacturing company
• C)maintenance,repair,and operating supplies at a service firm
• D)raw material items that become part of the final product at a manufacturing firm
• E)service industry items such as hospital supplies or office supplies for law firms

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Definitions:

Interest Rate

The percentage charged or paid for the use of money on a loan or investment, typically expressed as an annual percentage rate (APR).

Miller-Orr Model

A financial management model used to determine the optimal level of cash balance a company should maintain, considering the costs of cash management and the variability of cash flows.

Opportunity Rate

The expected rate of return on the best alternative investment option.

Monthly Cash Flows

The net amount of cash being transferred into and out of a business during a particular month.