1.
The cost of holding inventory is known as
a.setup cost.
b.carrying cost.
c.stock-out cost.
d.ordering cost.
2.
Assume there are two competing projects, X and Y. Project X hasa NPV of $1,500 and an IRR of 16%. Project Y has a NPV of $1,000and an IRR of 20%. Which of the following is true?
a.Project Y should be chosen because it has a higher IRR.
b.Project X should be chosen because it has a higher NPV.
c.It is not possible to choose between the two projects.
d.Neither project should be chosen.
3.
A defective product is one that does NOT
a.satisfy customers.
b.conform to specifications.
c.pass inspection.
d.appeal to customers.