A Study by a Consultant Shows That a Company That

question 100

Multiple Choice

A study by a consultant shows that a company that had $2,000,000 of inventory was holding excess inventory of $320,000 that could be eliminated with a few process improvements. It also has $620,000 in marketable securities that yield 5% per year. What is the estimated annual opportunity cost of holding the excess inventory?

• A) $16,000
• B) $100,000
• C) $31,000
• D) $47,000

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Definitions:

External Control

The regulation or influence of an individual's behavior by forces outside themselves, such as societal norms or laws.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, eventually triggers a conditioned response.

Original Stimulus

The initial factor or event that triggers a response or reaction in a behavioral, emotional, or cognitive context.

External Causes

Involves factors or circumstances outside an individual or system that impact outcomes or situations.