Which of the Following Would Be a Strategy to Increase

question 8

Multiple Choice

Which of the following would be a strategy to increase the salvage value of an unsold product?

• A) Discarding the unused material
• B) Selling unsold product to an outlet store
• C) Keeping the product in inventory until it sells
• D) Reduce the level of cycle inventory

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Definitions:

Cost Formula Equation

A mathematical equation used to predict costs, considering both fixed and variable components.

Fixed Component

The portion of a cost or expense that remains constant regardless of changes in the volume of goods or services produced or sold.

Dependent Variable

A variable that responds to some causal factor; total cost is the dependent variable, as represented by the letter Y, in the equation Y = a + bX.

Fixed Cost

Costs that do not change with the level of production or sales, such as rent or salaries.