A Company Has Had Stable Sales and Production for Several

question 86

Multiple Choice

A company has had stable sales and production for several years. Next year, sales are expected to increase by at least 50%. Assume that the company maintains its policy for desired ending inventories of finished product and direct materials purchases. What will be the likely effect on the desired ending finished goods inventory?

• A) It will increase.
• B) It will decrease.
• C) It will stay the same.
• D) It will be twice the size of the desired ending direct materials inventory.

---

Definitions:

HIV Virus

Human Immunodeficiency Virus, a virus that attacks the body's immune system and can lead to Acquired Immunodeficiency Syndrome (AIDS) if not treated.

Semen

A fluid that is generated by males and contains sperm cells, which is essential for human reproduction.

Saliva

A clear liquid secreted by the salivary glands in the mouth, important for digestion and maintaining oral health.

Cognitive Behavioral Stress Management

A therapeutic approach that combines cognitive-behavioral therapy techniques with stress management strategies to help individuals cope with stress.