Your Company Keeps 15 Days of Materials Inventory on Hand

question 53

Multiple Choice

Your company keeps 15 days of materials inventory on hand to avoid shutdowns due to materials shortages. Carrying costs average $5,000 per day. A competitor keeps 12 days of inventory on hand, and the competitor's carrying costs average $3,000 per day. The value-added costs are

• A)$0.
• B)$5,000.
• C)$30,000.
• D)$75,000.

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Definitions:

Placebo Effects

Positive changes in a patient's condition following a treatment that has no therapeutic effect, due to the patient's belief in the treatment.

Double-blind Procedure

An experimental method where neither the participants nor the experimenters know who is receiving a particular treatment.

Social Interaction

The process by which individuals act and react in relation to others, shaping society through their collective and individual behaviors.

Control Group

In experimental research, it is the group that does not receive the treatment or intervention, serving as a baseline to compare against the experimental group.