Which of the following attributes best represents how an organization regards the relationship between the cost of lost sales and inventory costs?
A.
Willingness to spend increasing amounts on inventory to decrease lost sales at a greater rate
B.
Willingness to spend increasing amounts on inventory but expect only minor changes in lost sales
C.
Unwillingness to spend increasing amounts on inventory because they see no correlation between inventory costs and the cost of lost sales
D.
Unwillingness to spend increasing amounts on inventory even though they understand that an inverse relationship exists between inventory costs and the cost of lost sales
The attribute that best represents how an organization regards the relationship between the cost of lost sales and inventory costs is:
B. Willingness to spend increasing amounts on inventory but expect only minor changes in lost sales.This option indicates that the organization recognizes the correlation between inventory costs and the cost of lost sales and is willing to invest more in inventory to mitigate lost sales. However, it also implies that the organization understands that there may only be minor changes in lost sales despite increasing inventory costs. This balanced approach suggests that the organization acknowledges the importance of managing inventory costs while addressing the impact of lost sales on overall profitability.
upvoted 1 times
...
Log in to ExamTopics
Sign in:
Community vote distribution
A (35%)
C (25%)
B (20%)
Other
Most Voted
A voting comment increases the vote count for the chosen answer by one.
Upvoting a comment with a selected answer will also increase the vote count towards that answer by one.
So if you see a comment that you already agree with, you can upvote it instead of posting a new comment.
am2005
8 months, 4 weeks ago