Figure 21-1 A Company Keeps 20 Days of Materials Inventory on Hand

question 30

Multiple Choice

Figure 21-1
A company keeps 20 days of materials inventory on hand to avoid shutdowns due to materials shortages. Carrying costs average £4,000 per day. A competitor keeps 10 days of inventory on hand, and the competitor's carrying costs average £2,000 per day.
-Refer to Figure 21-2. The value-added costs would be

• A)£100,000.
• B)£10,000.
• C)£5,000.
• D)£-0-.

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Definitions:

Variables

Elements or factors within research or data that can change and potentially affect the outcomes of experiments or studies.

Predictions

Statements about what is believed will happen in the future based on current evidence or hypotheses.

Lawful Order

A command or direction that is issued by a person in authority and that is legal in nature, requiring compliance.

Events

Occurrences or happenings that are significant in nature, often marked by a change or impact on the environment or individuals.