What Is the Primary Benefit of Using a Central Storage

question 85

Multiple Choice

What is the primary benefit of using a central storage warehouse for all components rather than using point-of-use storage?

• A) Reduced need for bar codes and radio frequency identification technology
• B) Reduced material handling costs
• C) Ease of control and count accuracy
• D) Maintain a cleaner shop floor

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Definitions:

Euribor

The interest rate at which banks lend to each other in euros, serving as an important benchmark for various financial instruments in the Eurozone.

FIFO

The first-in, first-out accounting method of inventory valuation.

LIFO

The last-in, first-out accounting method of valuing inventories.

Economic Earnings

The real flow of cash that a firm could pay out without impairing its productive capacity.