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:

Plain English

The use of clear, straightforward, and easy-to-understand language, especially in legal documents and communications.

Well Reasoned

An argument or decision that is logical, well thought out, and based on evidence or sound reasoning.

Demand Letter

A letter in which one party explains its legal position in a dispute and requests that the recipient take some action, such as paying money owed.

Contract

An agreement, based on a promise or an exchange of promises, that can be enforced in court.