Which of the Following Is True with Regard to Fill

question 11

Multiple Choice

Which of the following is true with regard to fill rates and inventory?

• A)There is a strong relationship between fill rates and the amount of inventory in stock.
• B)As inventory is added in steady increments,a firm's fill rate decreases.
• C)The higher the fill rate,the easier it is to improve the fill rate.
• D)Fill rates are inversely related to inventory levels.

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Definitions:

Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenue, indicating the company's profit.

Sales Revenue

The total amount of money generated from selling goods or services to customers.

Direct Labour Costs

The total expenses associated with paying workers who directly manufacture a product or perform a service.

Prime Costs

These are the direct costs of manufacturing a product, including direct materials and direct labor.