Economies of Scale in Purchasing and Ordering Motivate a Manager

question 31

Multiple Choice

Economies of scale in purchasing and ordering motivate a manager to

• A)increase the lot size and cycle inventory.
• B)decrease the lot size and cycle inventory.
• C)eliminate inventory.
• D)increase the lot size and reduce cycle inventory.

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Definitions:

Reportable Segments

This refers to distinct components of a business for which separate financial information is available and is regularly reviewed by the company's decision-makers.

Interest Revenue

Income earned by a company from its lending activities or from holding interest-bearing financial assets.

Seasonal Revenues

Income generated from business activities that fluctuates according to the season or a particular time of year, typical in industries like retail and agriculture.