Which of the Following Would Not Lead to a Build

question 95

Multiple Choice

Which of the following would not lead to a build up inventory as a strategy to increase operating income?

• A) Cutting overhead costs as year-end approaches.
• B) Plant manager switching to make products that absorb the highest amounts of fixed cists
• C) Plant manager accepting an order to increase production and build up inventory when another plant in the same company would be better suited to take on the order
• D) Allocating resources to production by deferring maintenance of equipment and building beyond the current period

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Definitions:

Coupon Rate

The interest rate paid by a bond issuer on its nominal value, determining the periodic interest payments to bondholders.

Yield To Maturity

The total return anticipated on a bond if held until its maturity date.

Intrinsic Value

The actual value of a company, stock, currency, or product determined through fundamental analysis without reference to its market value.

Annual

Pertaining to something that happens every year or is calculated over a year's time.