The Bullwhip Effect Can

question 51

Multiple Choice

The bullwhip effect can

• A)increase inventories.
• B)increase demand.
• C)increase customer service levels.
• D)increase capacity.

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Definitions:

Costs

Costs refer to the expenditures incurred by a business in the process of generating revenues.

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit.

Fixed Costs

Expenses that remain constant regardless of the amount of production or sales, including rent, wages, and insurance premiums.

Mixed Cost

A cost that contains both fixed and variable components and changes with the level of output but not directly in proportion.