A Firm Uses $20,000 of an Item Per Year

question 15

Multiple Choice

A firm uses $20,000 of an item per year. The carrying cost is 25%, the cost of ordering is $10 and the order quantity is $1,000. The annual total cost of carrying plus ordering would be:

• A) $2,500
• B) $5,000
• C) $500
• D) $816
• E) none of the above

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Definitions:

Taylorism

A management theory developed by F.W. Taylor, emphasizing scientific analysis of workflows to improve economic efficiency, especially labor productivity.

Cooperative Management

A management style that emphasizes collaboration, shared decision-making, and democratic practices in an organization.

Management by Stress

A controversial management technique where stress is deliberately induced or maintained in employees to increase productivity or achieve organizational goals.

Escape Strategy

A plan developed by individuals or organizations to withdraw from a situation or commitment in a methodical way.