Question

Which of the following is true of custom goods?

a. They are usually available as they are stocked in inventory.
b. They are produced on demand.
c. They are made in anticipation of customer demand.
d. They are made according to a fixed design.

Answer 1

Custom goods are made-to-order based on individual specifications and do not have a fixed design, thus they are produced on demand.

Step-by-step explanation:

Custom goods are made according to a fixed design. This means that they are produced based on specific requirements and specifications provided by the customer. The design or specifications may include factors such as size, material, color, and features. Examples of custom goods include made-to-order furniture, personalized jewelry, and tailored clothing.

Regarding custom goods, it is true that they are produced on demand. Unlike standardized products that are made en masse and stocked in inventory, custom goods are tailored to the specific requirements of a customer. This customization means that they do not have a fixed design; instead, they are made according to individual specifications that may vary widely from one order to another. The nature of these goods generally leads to a production process initiated after an order is received, rather than based on anticipated demand.