Which of the Following Is Not One of the Four

question 34

Multiple Choice

Which of the following is not one of the four major causes of the bullwhip effect?

• A) Demand forecast updating
• B) Order batching
• C) Price fluctuations
• D) The business cycle
• E) Rationing and shortage gaming

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Definitions:

Cost Behavior

The way in which a cost reacts or changes when there is a change in the level of business activity.

Variable Costing Format

An accounting method that only includes variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs.

Short-Term Pricing Decisions

Pricing strategies and choices made by a business to address immediate market demands, competitive pricing, or product lifecycle stages.

Total Variable Costs

The sum of all costs that vary directly with the level of production or sales volume, such as materials and labor costs.