Which of the Following Is a Disadvantage of the Chase

question 92

Multiple Choice

Which of the following is a disadvantage of the chase strategy of sales and operations planning?

• A)minimization of inventory holding costs
• B)flexibility in the use of capacity
• C)reduced obsolescence and shrinkage
• D)higher costs of hiring,training,and laying-off employees

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Definitions:

Credit Sales

Sales in which the customer is allowed to pay at a later time, typically generating accounts receivable on the balance sheet.

COGS

Cost of Goods Sold; the direct costs attributable to the production of the goods sold by a company, including materials and labor.

Payables Turnover Rate

A financial ratio indicating how efficiently a company pays its suppliers, calculated by dividing total purchases by average accounts payable.

Accounts Payable Balance

The total amount of money that a company owes to its suppliers or creditors for items or services purchased on credit.