ZuTech Makes Sensitive Monitors for Measuring Exposure to Hazardous Materials

question 163

Multiple Choice

ZuTech makes sensitive monitors for measuring exposure to hazardous materials.ZuTech has suffered substantial losses when moving products from the assembly line to the warehouse and shipping docks.ZuTech should consider reducing the number of times an item is moved in the warehouse by installing a(n) :

• A) inventory control system
• B) materials-handling system
• C) safety procedure to manage SKUs
• D) order-processing system
• E) outsourcing system

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Definitions:

Financial Distress

Financial Distress occurs when an entity faces difficulties in meeting its financial obligations, often leading to insolvency or bankruptcy.

Leverage

Utilizing borrowed funds or debt to enhance the possible returns from an investment.

EBIT

Earnings Before Interest and Taxes, a measure of a firm's profit that includes all expenses except interest and income tax expenses.

WACC

Weighted Average Cost of Capital, a calculation used to estimate the average cost of a company's financing including equity and debt, reflecting the risk of investments.