A Line of Credit or a Credit Card Is Not

question 80

True/False

A line of credit or a credit card is not an example of revolving open-end credit.

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Definitions:

Vendor Managed Inventory (VMI)

A supply chain initiative where the supplier assumes the responsibility of managing inventory levels for the customer.

Outsourcing

The business practice of hiring a party outside a company to perform services and create goods that traditionally were performed in-house by the company's own employees and staff.

Holding Cost Rate

The percentage of the value of inventory held over a certain period of time as costs, including storage, insurance, and depreciation.

Economical

Characterized by efficiency and avoidance of waste, referring to the cost-effective allocation and use of resources.