Which One of the Following Statements About Anticipation Inventory Is

question 45

Multiple Choice

Which one of the following statements about anticipation inventory is TRUE?

• A) It is a portion of inventory that is used to absorb only the variation in demand.
• B) It is a portion of inventory that is used to absorb variation in demand or supply.
• C) It is a portion of inventory that is reserved for the best customer.
• D) It is a portion of inventory that is used to absorb only the variation in supply.

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Definitions:

Slippery Slope Argument

A logical fallacy that assumes a relatively small first step will lead to a chain of related events culminating in some significant effect, often negative.

Consequences

The results or outcomes that naturally follow from a person's actions or a set of circumstances.

Fallacy Of Composition

The logical error of assuming what is true for a part is also true for the whole.

Slippery Slope Fallacy

A logical fallacy that occurs when an argument suggests that a minor first step will lead to a chain of related and undesired events.