Which of the Following Costs Will Tend to Increase If

question 102

Multiple Choice

Which of the following costs will tend to increase if a firm switches to a restrictive short-term financial policy from a flexible short-term policy?
I.Lost sales due to out-of-stock items
II.Inventory warehousing costs
III.Cash-outs
IV.Total annual order costs

• A)I and III only
• B)II and IV only
• C)I, III, and IV only
• D)I, II, and IV only
• E)I, II, III, and IV

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Definitions:

Temperature

A measure of the average kinetic energy of the particles in a system, reflecting the system's thermal state or degree of heat.

Catalysts

Substances that increase the rate of chemical reactions without being consumed in the process.

Enzymes

Biomolecules that substantially increase the pace of nearly all chemical processes happening within cellular structures.

Concentration

is the measure of the amount of a subcomponent (especially solute) in a solution.