A Study by a Consultant Shows That a Company That

question 100

Multiple Choice

A study by a consultant shows that a company that had $2,000,000 of inventory was holding excess inventory of $320,000 that could be eliminated with a few process improvements. It also has $620,000 in marketable securities that yield 5% per year. What is the estimated annual opportunity cost of holding the excess inventory?

• A) $16,000
• B) $100,000
• C) $31,000
• D) $47,000

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Definitions:

Eyewitness

A person who has directly observed an event and can provide a first-hand account of it.

Cross-examining

The process of questioning a witness by the opposing party in a court of law to discredit their testimony or gain information.

Desensitization

The process by which someone is made less likely to feel shock or distress at scenes of cruelty, violence, or suffering by being exposed to them repeatedly.

Media Content

The information, stories, features, images, and video presented through media channels.