Dell Computers Has Increased Production Efficiency by

question 11

Multiple Choice

Dell computers has increased production efficiency by

• A) producing output with fewer inputs.
• B) expanding the amount of inputs used.
• C) outsourcing production.
• D) relying on decreasing returns to scale.

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Definitions:

Target Cash Balance

The optimal amount of cash a company seeks to maintain to handle operational and transactional needs efficiently.

Carrying Costs

Expenses associated with holding inventory, including storage costs, insurance, and loss due to obsolescence.

Shortage Costs

Expenses incurred from inventory deficits, including lost sales and additional costs for expedited shipping.

Adjustment Costs

Expenses incurred in the process of modifying a business operation or strategy, including restructuring or equipment changes.