Which of the Following Costs Will Tend to Increase If

question 102

Multiple Choice

Which of the following costs will tend to increase if a firm switches to a restrictive short-term financial policy from a flexible short-term policy?
I.Lost sales due to out-of-stock items
II.Inventory warehousing costs
III.Cash-outs
IV.Total annual order costs

• A)I and III only
• B)II and IV only
• C)I, III, and IV only
• D)I, II, and IV only
• E)I, II, III, and IV

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Definitions:

Custom

Traditional and widely accepted ways of behaving or doing something that are specific to a particular society, place, or time.

Power Distance

A cultural dimension that describes the extent to which less powerful members of organizations and institutions accept and expect that power is distributed unequally.

Societal Inequalities

The unequal distribution of resources, rights, and opportunities among different social groups within a society.

Power Distance

A cultural dimension that describes the extent to which less powerful members of organizations and institutions accept and expect power to be distributed unequally.