Firms React to Unplanned Increases in Inventories by

question 63

Multiple Choice

Firms react to unplanned increases in inventories by

• A) reducing output.
• B) increasing output.
• C) increasing planned investment.
• D) increasing consumption.

---

Definitions:

Conscientiousness

A personality trait characterized by diligence, carefulness, and the desire to do a task well, often linked to high levels of responsibility and dependability.

Job Performance

The level of effectiveness and efficiency with which an individual or group fulfills their work-related tasks and responsibilities.

Leadership Capacity

The potential or ability for individuals to lead effectively, often developed through experience, training, and personal growth.

Variable Cost

Expenses that change in proportion with the level of production or sales volume, such as raw materials and direct labor costs.