Proved Reserves Are Likely to Underestimate the Total Quantity of the Resource

question 193

Multiple Choice

Proved reserves are likely to underestimate the total quantity of the resource in the ground because

• A) of flaws in information flows between countries.
• B) government agencies have an incentive to keep reserves secret.
• C) of future improvements in technology and higher future prices.
• D) scientists have not been able to use the latest techniques to estimate reserves in less developed countries.

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Definitions:

Forecasted Demand

The estimated amount of product or service that will be bought by customers in a future period, often used for planning in business operations.

Postponement

A supply chain strategy that delays the final production or distribution of a product until customer orders are received to minimize inventory and forecast error costs.

Product Differentiation

The method of making a product or service stand out from competitors in the marketplace to appeal more effectively to a specific target audience.

Disaggregating Inventories

The process of breaking down inventory into detailed categories or segments to better manage and control stock.