A Company Keeps 15 Days of Materials Inventory on Hand

question 3

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 non-value-added costs would be

• A) $-0-.
• B) $30,000.
• C) $75,000.
• D) $80,000.

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Definitions:

Field of Experience

The background, knowledge, perceptions, and understanding that individuals or groups bring to a communication situation, influencing their interpretation of messages.

Shared Understanding

A condition wherein all members of a group or team have a common and consistent comprehension of information, objectives, or tasks.

Psychographics

The study and classification of people according to their attitudes, aspirations, and other psychological criteria, especially in market research.

Communication Process

The sequence of steps through which information is transmitted from a sender to a receiver, involving encoding, medium selection, decoding, and feedback.