A Company Keeps 15 Days of Materials Inventory on Hand

question 128

Multiple Choice

A company keeps 15 days of materials inventory on hand to avoid shutdowns due to materials shortages. Carrying costs average £5,000 per day. A competitor keeps 12 days of inventory on hand, and the competitor's carrying costs average £3,000 per day. The value-added costs are

• A) £5,000.
• B) £-0-.
• C) £30,000.
• D) £75,000.

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Definitions:

Infant Mortality

The death of young children under the age of one, often measured as the number of deaths per 1,000 live births, indicative of a country's health status.

Polygamy

A matrimonial tradition in which a person has multiple spouses at the same time.

Celibacy

The voluntary abstention from marriage and sexual relations, often for religious or spiritual reasons.

Technological Advances

Progress and innovations in technology that lead to new products, efficiencies, or capabilities, often transforming societies and economies.