Which of the Following Events Would Increase the Supply of Tomatoes

question 4

Multiple Choice

Which of the following events would increase the supply of tomatoes?

• A) A decrease in the price of pasta products.
• B) An increase in wages for the tomato pickers.
• C) A decrease in the cost of fertilizers for the tomato plants.
• D) Unseasonably hot, dry weather in the tomato-growing regions of the nation.

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Definitions:

Just-In-Time Systems

Inventory management systems that produce or provide items exactly when needed, minimizing inventory costs.

Stock-Outs

Stock-outs occur when an item is no longer available for sale, typically because inventory levels have been depleted.

Periodic Inventory System

A method of inventory valuation where inventory counts and cost of goods sold calculations are made periodically at the end of a reporting period, instead of after each sale.

Cost Flow Assumptions

Accounting principles that dictate how the cost of goods sold and ending inventory values are calculated, such as FIFO (First-In, First-Out) or LIFO (Last-In, First-Out).