Hudson,Inc

question 39

Multiple Choice

Hudson,Inc. ,is considering a change from a traditional purchasing system to a just-in-time purchasing system.What has probably happened to Hudson's cost per purchase order and inventory unit storage cost to prompt the company to consider such a change?

• A)Purchase-order cost is increasing and unit storage cost is increasing.
• B)Purchase-order cost is increasing and unit storage cost is decreasing.
• C)Purchase-order cost is decreasing and unit storage cost is increasing.
• D)Purchase-order cost is decreasing and unit storage cost is decreasing.
• E)Both of these costs are relatively stable in amount.

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