A Nondurable Good

question 141

Multiple Choice

A nondurable good

• A) has a life span of more than 3 years.
• B) is used up within 3 years.
• C) applies only to services.
• D) is an intangible commodity.

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Definitions:

Investments in Inventory

Funds allocated by a business to purchase goods and materials held for resale or production.

Minimum Costs

The lowest amount that can be spent on the production of a good or service while maintaining its quality.

Holding Inventory

The process of storing unsold goods or materials that a business intends to sell to generate revenue.

Ordering Costs

Expenses associated with placing orders for goods or services, including cost of paperwork, communication, and transportation.