Which of the Following Is a Store of Value

question 26

Multiple Choice

Which of the following is a store of value?

• A)cash and stocks
• B)cash but not stocks
• C)stocks but not cash
• D)neither cash nor stocks

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Definitions:

Material Cost

The expense incurred in acquiring the raw materials needed to produce a good or deliver a service.

Holding Cost

Holding cost is the expense associated with storing unsold goods or items held in inventory over a certain period, including warehousing, insurance, and depreciation costs.

Economies of Scale

The cost advantage achieved by an increase in production volume that leads to a reduction in per-unit costs.

Cycle Inventory

The portion of inventory available due to the batching of orders, which rotates regularly and is used to meet consumer demand between replenishments.