One Strategy Managers Use to Reduce the Holding Costs of Inventory

question 29

Multiple Choice

One strategy managers use to reduce the holding costs of inventory is

• A)separation of duties.
• B)regular inventory counts.
• C)electronic tags.
• D)JIT delivery.

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Definitions:

Fixed Costs

Costs that remain constant regardless of the amount of goods produced or sold, including examples like rent, wages, and insurance premiums.

Labor

Work, especially physical, manual, or non-executive work, done in exchange for payment; also refers to the workforce or workers in general.

Materials

The substances or components used in the production of goods or in the execution of services.

Total Costs

The sum of all expenses incurred in the production of goods or services, including fixed and variable costs.