Which of the Following Is One of the Three Main

question 4

Multiple Choice

Which of the following is one of the three main reasons to introduce a change?

• A) to solve a problem
• B) to maintain efficiency
• C) to maintain workload
• D) to acknowledge that change is inevitable

---

Definitions:

Adjustment Costs

The costs associated with holding too little cash.

Carrying Costs

Expenses associated with holding or storing inventory, including warehousing, insurance, tax, and depreciation.

Shortage Costs

The costs associated with not having enough inventory on hand, which can include lost sales and customer dissatisfaction.