Which One of the Following Is Not a Carrying Cost

question 15

Multiple Choice

Which one of the following is not a carrying cost to holding inventory?

• A) Risk of being short of inventory and unable to satisfy orders
• B) Lost interest on funds tied up in inventory
• C) Spoilage
• D) Possible obsolescence

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Definitions:

Legal Regulations

Rules and guidelines enforced by government agencies to control behavior, ensure fairness, and protect both public and private interests.

McGregor's Theory X

A management theory suggesting that employees are inherently lazy and need to be closely supervised.

Theory Y

A management concept that assumes employees are self-motivated, seek responsibility, and can solve work problems creatively.

Green Revolution

A period of technology transfer, starting in the 1940s, which significantly increased agriculture production worldwide, particularly in developing countries, through the use of modern farming techniques and technologies.