Select the One Best of the Following Statements

question 20

Multiple Choice

Select the one best of the following statements:

• A) inventories allow manufacturing to level out production and to satisfy peak demand
• B) inventories allow manufacturing to reduce production runs, reducing unit cost
• C) inventories allow manufacturers to operate different work centers at the same output
• D) all the above are true
• E) none of the above is true

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Definitions:

Loan

A loan amount that requires repayment along with interest accrued.

Repay

To pay back or return money that has been borrowed or spent.

Interest Rate

The percentage at which interest is paid by borrowers for the use of money they borrow from a lender.

Original Loan

The initial amount of money borrowed before any interest or fees are added.