Which of the Following Statements Concerning Maintaining Inventory at High

question 52

Multiple Choice

Which of the following statements concerning maintaining inventory at high levels are TRUE?

• A)The longer the materials remain in storage,the more money the company loses.
• B)Maintaining high levels of inventory can lead to serious write-offs.
• C)Maintaining high levels of inventory is a recommended material planning policy.
• D)Maintaining high levels of inventory can incur insurance costs.
• E)The company may lose money storing excessive inventory,but the customer's interest must be the company's highest priority.

---

Definitions:

Taste Bud

Sensory organs located on the tongue that are responsible for detecting taste, including sweet, salty, sour, bitter, and umami.

Olfactory Bulb

A part of the brain responsible for processing smell.

Olfactory Stimulus

Any object or substance that triggers a response from the olfactory system, related to the sense of smell.

Amygdala

A section of the brain that is involved in emotions, emotional behavior, and motivation.