Which of the Following Is a Benefit of the QR

question 74

Multiple Choice

Which of the following is a benefit of the QR system?

• A) Increases inventory investment
• B) Has no effect on the economic order quantity
• C) Shortens lead time
• D) Increases the need for safety stock
• E) Reduces fixed costs

---

Definitions:

Compounded Interest

This refers to the calculation of interest on the original principal amount as well as on the interest that has accrued in earlier times, applicable to both deposits and loans.

Rate Of Return

The earning or losing of funds on an investment throughout a defined timeframe, detailed as a percentage of the original amount invested.

Profits

The financial gain made in a transaction or operation, calculated as the difference between revenue and costs.

Compounded Annually

This refers to the process where interest is added to the principal sum, so that from that moment on, the interest that has been added also earns interest, being calculated and added to the account annually.