Which Item Would Be Least Likely to Be Ordered Under

question 62

Multiple Choice

Which item would be least likely to be ordered under a fixed-order-interval system?

• A)textbooks at a college bookstore
• B)auto parts at an assembly plant
• C)cards at a gift shop
• D)canned peas at a supermarket
• E)magazines at a news stand

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Definitions:

Capital Budget

The process and plan for allocating resources for major investments or projects that a company undertakes to maintain or expand its operations.

Optimal Capital

The best mix of debt, equity, and other financing sources to maximize a firm’s value while minimizing its cost of capital.

Swaps

Financial derivatives where two parties agree to exchange cash flows or other financial instruments for a set period of time.

Currency Swaps

Bilateral agreements to exchange periodic payments where the payments are based in two different currencies.