1. Which one of the following is an example of erosion?
A. Company Z has an entire molding facility that is sitting idle due to the lack of demand for the firm’s products.
B. You bought a painting last year for $1.2 million. Today, the painting is only worth $1.13 million.
C. Company X spent $12,000 painting and repairing its office facilities last year. This year, the entire office complex is being torn down and an entirely new structure is being built.
D. Your hot dog stand added barbeque sandwiches to its menu and as a result you are selling less hot dogs.
2. - Analyze inventory costs using an example?
- Generally, how does a firm manage its inventory efficiently?