International Manufacturing Group (IMG) has previously experienced production issues due to
stockouts, following the introduction of a just in time approach two years ago. Since then it has
increased its inventory levels of many key components. This has caused issues for IMG as its insurance
costs have increased as have the levels of obsolescence and damage. These issues relate to which ONE
of the following?
a. Holding costs
b. Indirect costs
c. Fixed costs
d. Acquisition costs
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Answer:
May be c)fixed cost
May correct if wrong sorry
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