Value Can Be Created By

question 52

Multiple Choice

Value can be created by:

• A)Production
• B)Acquiring, turning around and selling off divisions or units
• C)Commerce
• D)Production and Commerce, or where appropriate by Commerce alone.

---

Definitions:

Shortage Cost

Costs incurred when demand exceeds supply, leading to inventory shortfalls, lost sales, and potential damage to customer satisfaction.

Negative Cumulative Cash Surplus

A financial situation where the cumulative cash flows from a project or business are negative, indicating a deficit.

Borrowing Need

The necessity for an individual or organization to raise funds through loans or debt issuance to finance its operations or investments.

Costs Of Placing An Order

Expenses associated with ordering inventory, including administrative costs, shipping, handling, and procurement costs, critical in managing inventory levels.