To Discourage Producing for Inventory,management Can

question 177

Multiple Choice

To discourage producing for inventory,management can:

• A)incorporate a carrying charge for inventory in the internal accounting system
• B)evaluate performance over a three- to five-year period rather than a single year
• C)evaluate non-financial measures such as units in ending inventory compared to units in sales
• D)All of these answers are correct.

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Definitions:

Data

Factual information, often structured in numbers, text, or images, used as a basis for reasoning, discussion, or calculation.

Information

Data that has been processed, organized, or structured in a way that adds context or meaning.

Bounded Rationality Model

A concept suggesting that individuals make decisions based on the limited information available to them and within the constraints of their cognitive capacity.

Political Model

A framework that analyzes organizational decision-making and behavior through the lens of power, conflict, and lobbying among competing stakeholders.