To Manage Its Inventories Efficiently, KC Mart, a Supermarket, Enters

question 9

Multiple Choice

To manage its inventories efficiently, KC Mart, a supermarket, enters into a five-year contract with Ziff Corp., an information technology firm. As per the contract, KC Mart has to pay $125,000 per year to Ziff Corp. in exchange for the information regarding consumer purchase behaviors. In the given scenario, the cost that KC Mart has to incur is the _____.

• A) processing cost
• B) acquisition cost
• C) retrieval cost
• D) storage cost

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Definitions:

Data Warehouse

A central repository for storing, managing, and analyzing large volumes of data from various sources.

External Data Sources

Information collected from outside an organization for analysis, including market trends, competitor data, and economic indicators.

Internal Data Sources

Information collected from within an organization, such as sales records, customer feedback, and inventory levels, used for decision-making and strategic planning.

Independent

Refers to entities or individuals that operate autonomously, without external control or support.