Question 5 (1 point)

A reason for maintaining sales with an "unprofitable" customer is

Other is reason to believe the relationship with the customer will become profitable in the future

the customer provides valuable information to your company

the relationship attracts other profitable customers

all the listed answers are correct

Question 6 (1 point)

Which of the following is correct when higher inventory volumes are pursued

purchasing costs may go down; insurance costs may go up: ordering costs may go down; spoilage costs may go up; building related costs may go down

purchasing costs may go up; insurance costs may go up: ordering costs may go down; spoilage costs may go up; building related costs may go down

purchasing costs may go up; insurance costs may go up; ordering costs may go

up; spoilage costs may go up; building related costs may go up

purchasing costs may go down; insurance costs may go up; ordering costs may go down; spoilage costs may go up; building related costs may go up

Question 7 (1 point)

The presence of "Safety Stock" increases "Carrying Costs" associated with inventory

True

False

Question 8 (2 points)

In 2019, Company G sold 6,000 units for a total of $1.2 million in revenue. In 2020, Company G sold 7,000 units for a total of $1.26 million in revenue. Compared to 2019, 2020 had a "sales quantity variance" of

$200,000 F

$1,000 U

$200,000 U

$1000 F