Which of the Following Activities Would Be Most Closely Associated

question 271

Multiple Choice

Which of the following activities would be most closely associated with inbound logistics?

• A) Arranging equipment on the factory floor so that materials move smoothly and efficiently from one work station to the next
• B) Evaluating various shipping methods to find the most efficient way to transport goods to the final customer
• C) Establishing a program to encourage customers to return used products to the manufacturer so materials can be recycled
• D) Working with suppliers to establish a more frequent delivery system that will enable the manufacturing firm to hold smaller inventories of parts and materials

---

Definitions:

Above Average P/E Multiple

A valuation metric indicating that a company's current share price is higher relative to its per-share earnings than the industry or overall market average.

Risk-adjusted Equity Cost

A method of determining the cost of equity capital that incorporates the risk associated with the equity investment.

Price Earnings Ratio

A valuation metric that compares a company's share price to its per-share earnings, used to evaluate if a stock is over or under-valued.

Risk-adjusted Cost

A financial measure that adjusts the costs of an investment by considering the risk involved, accounting for the riskier nature of some investments compared to others.