A Disadvantage of Maintaining High Inventory Levels Includes

question 39

Multiple Choice

A disadvantage of maintaining high inventory levels includes

• A)providing a "buffer" to protect against process problems.
• B)hiding underlying production problems such as unexpected scrap and rework.
• C)maintaining inventory is wasteful and unnecessary.
• D)both hiding underlying production problems and the fact that maintaining inventory is wasteful and unnecessary are disadvantages of maintaining inventory.

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Definitions:

Output

The total amount of goods or services produced by a company, sector, or economy in a given period.

Slope

In mathematics, a measure of the steepness, incline, or grade of a line, typically calculated as the ratio of rise over run.

Purchased Abroad

Items or services bought from another country, often involving importation and subject to international trade policies and currency exchange rates.

Sold Abroad

A term referring to goods or services that are exported to another country.