How Does Carrying Inventories Contribute to Economies of Scale

question 13

Multiple Choice

How does carrying inventories contribute to economies of scale?

• A)Increases the interest on the expenses to produce the inventory
• B)Inventory depreciates in value while waiting to be used or sold
• C)Increases the storage facilities necessary
• D)Increases competition with rivals for customers
• E)Minimizes the chance of stock-out

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Definitions:

Table Manners

The rules of etiquette used while eating, including the proper use of utensils, napkins, and how to conduct oneself at the dining table.

Modeling

A method of learning that involves observing and imitating the behavior of others, often discussed in the context of social learning theory.

Systematic Desensitization

A behavioral therapy technique used to reduce phobic responses and anxiety through gradual exposure to the feared object or situation.

Operant Conditioning

A training procedure by which behavior intensity is changed through reinforcement or punishment.