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When manufacturing cycle​ increases, ________. A. opportunity costs will decrease B. inventory carrying costs will increase C. opportunity costs will increase D. sunk costs will decrease

2 Answers

4 votes

Answer:

B) inventory carrying costs will increase

Step-by-step explanation:

Manufacturing cycle refers to total amount of time required to complete a manufacturing process starting from raw materials to finished products.

Carrying costs refer to the cost of holding materials, components or finished products in inventory.

If the manufacturing cycle increases, it will take more time to complete the production process, therefore the materials and components will spend more time in inventory, raising carrying costs.

User Geoffrey Marizy
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5 votes

Answer: B. inventory carrying costs will increase

User Kiran
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