How Does Carrying Inventories Contribute to Economies of Scale

question 13

Multiple Choice

How does carrying inventories contribute to economies of scale?

• A)Increases the interest on the expenses to produce the inventory
• B)Inventory depreciates in value while waiting to be used or sold
• C)Increases the storage facilities necessary
• D)Increases competition with rivals for customers
• E)Minimizes the chance of stock-out

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