The disadvantage of building up inventory during the off season to meet demand during peak seasons and keep production stable year round is
A) very low inventory costs because no inventory needs to be carried from period to period.
B) very high inventory costs because inventory needs to be carried from period to period.
C) in the fact that a firm could get by with a smaller, less expensive factory.
D) in the fact that a firm could get by with a larger, more expensive factory.
Answer: B
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What purpose does analyzing the prime interest rates serve in case analysis?
a. For better assessment of strategic decisions to borrow money to build new facilities. b. It serves as documentation for the case analyst for their evaluation. c. It acts as a means to compare an organization's performance with other direct competitors. d. It acts as a means to compare an organization's performance with the entire industry. e. It acts as a means to compare an organization's performance with the entire economy.