The Inventories of a Company That Manufactures Snow Blowers Increase

question 22

Multiple Choice

The inventories of a company that manufactures snow blowers increase in the summer and decline in the winter. This example is most consistent with which of the following explanations for holding inventories?

• A) production smoothing
• B) inventories as factors of production
• C) stock-out avoidance
• D) work in process

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Definitions:

Single Line

A straight line that has no bends or curves.

Numeric Amount

A figure or value expressed in numbers, representing quantity or magnitude.

Electronic Check

A digital version or representation of a paper check, used to make electronic payments directly from a checking account.

Checking Account

A bank account that allows the account holder to withdraw funds, write checks, and make electronic transactions.